Correlation Between SIERRA METALS and HANOVER INSURANCE
Can any of the company-specific risk be diversified away by investing in both SIERRA METALS and HANOVER INSURANCE at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SIERRA METALS and HANOVER INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SIERRA METALS and HANOVER INSURANCE, you can compare the effects of market volatilities on SIERRA METALS and HANOVER INSURANCE and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SIERRA METALS with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of SIERRA METALS and HANOVER INSURANCE.
Diversification Opportunities for SIERRA METALS and HANOVER INSURANCE
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between SIERRA and HANOVER is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding SIERRA METALS and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and SIERRA METALS is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SIERRA METALS are associated (or correlated) with HANOVER INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANOVER INSURANCE has no effect on the direction of SIERRA METALS i.e., SIERRA METALS and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between SIERRA METALS and HANOVER INSURANCE
Assuming the 90 days trading horizon SIERRA METALS is expected to generate 3.17 times less return on investment than HANOVER INSURANCE. In addition to that, SIERRA METALS is 2.31 times more volatile than HANOVER INSURANCE. It trades about 0.02 of its total potential returns per unit of risk. HANOVER INSURANCE is currently generating about 0.12 per unit of volatility. If you would invest 13,219 in HANOVER INSURANCE on October 14, 2024 and sell it today you would earn a total of 1,381 from holding HANOVER INSURANCE or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SIERRA METALS vs. HANOVER INSURANCE
Performance |
| Timeline |
| SIERRA METALS |
| HANOVER INSURANCE |
SIERRA METALS and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SIERRA METALS and HANOVER INSURANCE
The main advantage of trading using opposite SIERRA METALS and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SIERRA METALS position performs unexpectedly, HANOVER INSURANCE can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HANOVER INSURANCE will offset losses from the drop in HANOVER INSURANCE's long position.| SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc | SIERRA METALS vs. Apple Inc |
| HANOVER INSURANCE vs. ANTA SPORTS PRODUCT | HANOVER INSURANCE vs. Alfa Financial Software | HANOVER INSURANCE vs. SIERRA METALS | HANOVER INSURANCE vs. PKSHA TECHNOLOGY INC |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |