Correlation Between Ramsay Générale and Hanover Insurance
Can any of the company-specific risk be diversified away by investing in both Ramsay Générale 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 Ramsay Générale and Hanover Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Gnrale de and The Hanover Insurance, you can compare the effects of market volatilities on Ramsay Générale 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 Ramsay Générale with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Générale and Hanover Insurance.
Diversification Opportunities for Ramsay Générale and Hanover Insurance
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ramsay and Hanover is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Gnrale de and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and Ramsay Générale 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 Ramsay Gnrale de 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 Ramsay Générale i.e., Ramsay Générale and Hanover Insurance go up and down completely randomly.
Pair Corralation between Ramsay Générale and Hanover Insurance
Assuming the 90 days horizon Ramsay Générale is expected to generate 173.18 times less return on investment than Hanover Insurance. In addition to that, Ramsay Générale is 1.8 times more volatile than The Hanover Insurance. It trades about 0.0 of its total potential returns per unit of risk. The Hanover Insurance is currently generating about 0.13 per unit of volatility. If you would invest 11,832 in The Hanover Insurance on August 28, 2024 and sell it today you would earn a total of 3,668 from holding The Hanover Insurance or generate 31.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ramsay Gnrale de vs. The Hanover Insurance
Performance |
| Timeline |
| Ramsay Gnrale de |
| Hanover Insurance |
Ramsay Générale and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Générale and Hanover Insurance
The main advantage of trading using opposite Ramsay Générale and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Générale 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.| Ramsay Générale vs. STORE ELECTRONIC | Ramsay Générale vs. AOI Electronics Co | Ramsay Générale vs. LPKF Laser Electronics | Ramsay Générale vs. UPDATE SOFTWARE |
| Hanover Insurance vs. Samsung Electronics Co | Hanover Insurance vs. Corporate Office Properties | Hanover Insurance vs. ARROW ELECTRONICS | Hanover Insurance vs. KENEDIX OFFICE INV |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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