Correlation Between INTERSHOP Communications and HANOVER INSURANCE
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By analyzing existing cross correlation between INTERSHOP Communications Aktiengesellschaft and HANOVER INSURANCE, you can compare the effects of market volatilities on INTERSHOP Communications 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 INTERSHOP Communications with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTERSHOP Communications and HANOVER INSURANCE.
Diversification Opportunities for INTERSHOP Communications and HANOVER INSURANCE
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INTERSHOP and HANOVER is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding INTERSHOP Communications Aktie and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and INTERSHOP Communications 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 INTERSHOP Communications Aktiengesellschaft 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 INTERSHOP Communications i.e., INTERSHOP Communications and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between INTERSHOP Communications and HANOVER INSURANCE
Assuming the 90 days trading horizon INTERSHOP Communications Aktiengesellschaft is expected to under-perform the HANOVER INSURANCE. In addition to that, INTERSHOP Communications is 1.57 times more volatile than HANOVER INSURANCE. It trades about -0.22 of its total potential returns per unit of risk. HANOVER INSURANCE is currently generating about -0.09 per unit of volatility. If you would invest 15,100 in HANOVER INSURANCE on September 14, 2024 and sell it today you would lose (400.00) from holding HANOVER INSURANCE or give up 2.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTERSHOP Communications Aktie vs. HANOVER INSURANCE
Performance |
| Timeline |
| INTERSHOP Communications |
| HANOVER INSURANCE |
INTERSHOP Communications and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTERSHOP Communications and HANOVER INSURANCE
The main advantage of trading using opposite INTERSHOP Communications and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTERSHOP Communications 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.| INTERSHOP Communications vs. Salesforce | INTERSHOP Communications vs. Superior Plus Corp | INTERSHOP Communications vs. SIVERS SEMICONDUCTORS AB | INTERSHOP Communications vs. Norsk Hydro ASA |
| HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Apple 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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