Correlation Between Lion One and Hanover Insurance
Can any of the company-specific risk be diversified away by investing in both Lion One 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 Lion One and Hanover Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lion One Metals and The Hanover Insurance, you can compare the effects of market volatilities on Lion One 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 Lion One with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lion One and Hanover Insurance.
Diversification Opportunities for Lion One and Hanover Insurance
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lion and Hanover is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Lion One Metals and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and Lion One 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 Lion One 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 Lion One i.e., Lion One and Hanover Insurance go up and down completely randomly.
Pair Corralation between Lion One and Hanover Insurance
Assuming the 90 days horizon Lion One Metals is expected to under-perform the Hanover Insurance. In addition to that, Lion One is 3.01 times more volatile than The Hanover Insurance. It trades about -0.1 of its total potential returns per unit of risk. The Hanover Insurance is currently generating about 0.16 per unit of volatility. If you would invest 12,794 in The Hanover Insurance on September 1, 2024 and sell it today you would earn a total of 3,707 from holding The Hanover Insurance or generate 28.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lion One Metals vs. The Hanover Insurance
Performance |
| Timeline |
| Lion One Metals |
| Hanover Insurance |
Lion One and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lion One and Hanover Insurance
The main advantage of trading using opposite Lion One and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lion One 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.| Lion One vs. Irving Resources | Lion One vs. Headwater Gold | Lion One vs. Novo Resources Corp | Lion One vs. Snowline Gold Corp |
| Hanover Insurance vs. Selective Insurance Group | Hanover Insurance vs. Aquagold International | Hanover Insurance vs. Thrivent High Yield | Hanover Insurance vs. Morningstar Unconstrained Allocation |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |