Correlation Between Joh Friedrich and HANOVER INSURANCE
Can any of the company-specific risk be diversified away by investing in both Joh Friedrich 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 Joh Friedrich and HANOVER INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Joh Friedrich Behrens and HANOVER INSURANCE, you can compare the effects of market volatilities on Joh Friedrich 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 Joh Friedrich with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Joh Friedrich and HANOVER INSURANCE.
Diversification Opportunities for Joh Friedrich and HANOVER INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Joh and HANOVER is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Joh Friedrich Behrens and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and Joh Friedrich 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 Joh Friedrich Behrens 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 Joh Friedrich i.e., Joh Friedrich and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between Joh Friedrich and HANOVER INSURANCE
If you would invest 12,638 in HANOVER INSURANCE on November 28, 2024 and sell it today you would earn a total of 2,462 from holding HANOVER INSURANCE or generate 19.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.19% |
| Values | Daily Returns |
Joh Friedrich Behrens vs. HANOVER INSURANCE
Performance |
| Timeline |
| Joh Friedrich Behrens |
| HANOVER INSURANCE |
Joh Friedrich and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Joh Friedrich and HANOVER INSURANCE
The main advantage of trading using opposite Joh Friedrich and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Joh Friedrich 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.| Joh Friedrich vs. CITIC Telecom International | Joh Friedrich vs. China Southern Airlines | Joh Friedrich vs. Japan Tobacco | Joh Friedrich vs. CHINA TELECOM H |
| HANOVER INSURANCE vs. IMPERIAL TOBACCO | HANOVER INSURANCE vs. HUTCHISON TELECOMM | HANOVER INSURANCE vs. Chunghwa Telecom Co | HANOVER INSURANCE vs. GEAR4MUSIC LS 10 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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