Correlation Between GRIFFIN MINING and HANOVER INSURANCE
Can any of the company-specific risk be diversified away by investing in both GRIFFIN MINING 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 GRIFFIN MINING and HANOVER INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GRIFFIN MINING LTD and HANOVER INSURANCE, you can compare the effects of market volatilities on GRIFFIN MINING 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 GRIFFIN MINING with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRIFFIN MINING and HANOVER INSURANCE.
Diversification Opportunities for GRIFFIN MINING and HANOVER INSURANCE
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GRIFFIN and HANOVER is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GRIFFIN MINING LTD and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and GRIFFIN MINING 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 GRIFFIN MINING LTD 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 GRIFFIN MINING i.e., GRIFFIN MINING and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between GRIFFIN MINING and HANOVER INSURANCE
Assuming the 90 days horizon GRIFFIN MINING LTD is expected to generate 1.52 times more return on investment than HANOVER INSURANCE. However, GRIFFIN MINING is 1.52 times more volatile than HANOVER INSURANCE. It trades about 0.08 of its potential returns per unit of risk. HANOVER INSURANCE is currently generating about 0.04 per unit of risk. If you would invest 82.00 in GRIFFIN MINING LTD on September 23, 2024 and sell it today you would earn a total of 92.00 from holding GRIFFIN MINING LTD or generate 112.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRIFFIN MINING LTD vs. HANOVER INSURANCE
Performance |
| Timeline |
| GRIFFIN MINING LTD |
| HANOVER INSURANCE |
GRIFFIN MINING and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRIFFIN MINING and HANOVER INSURANCE
The main advantage of trading using opposite GRIFFIN MINING and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRIFFIN MINING 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.| GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc | GRIFFIN MINING vs. Apple Inc |
| HANOVER INSURANCE vs. Aluminum of | HANOVER INSURANCE vs. Singapore Telecommunications Limited | HANOVER INSURANCE vs. QURATE RETAIL INC | HANOVER INSURANCE vs. Ross Stores |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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