Correlation Between YOMA STRATEGIC and HANOVER INSURANCE
Can any of the company-specific risk be diversified away by investing in both YOMA STRATEGIC 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 YOMA STRATEGIC and HANOVER INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YOMA STRATEGIC HLDG and HANOVER INSURANCE, you can compare the effects of market volatilities on YOMA STRATEGIC 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 YOMA STRATEGIC with a short position of HANOVER INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of YOMA STRATEGIC and HANOVER INSURANCE.
Diversification Opportunities for YOMA STRATEGIC and HANOVER INSURANCE
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between YOMA and HANOVER is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding YOMA STRATEGIC HLDG and HANOVER INSURANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INSURANCE and YOMA STRATEGIC 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 YOMA STRATEGIC HLDG 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 YOMA STRATEGIC i.e., YOMA STRATEGIC and HANOVER INSURANCE go up and down completely randomly.
Pair Corralation between YOMA STRATEGIC and HANOVER INSURANCE
Assuming the 90 days trading horizon YOMA STRATEGIC HLDG is expected to under-perform the HANOVER INSURANCE. In addition to that, YOMA STRATEGIC is 3.15 times more volatile than HANOVER INSURANCE. It trades about -0.03 of its total potential returns per unit of risk. HANOVER INSURANCE is currently generating about -0.06 per unit of volatility. If you would invest 15,900 in HANOVER INSURANCE on December 10, 2024 and sell it today you would lose (400.00) from holding HANOVER INSURANCE or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YOMA STRATEGIC HLDG vs. HANOVER INSURANCE
Performance |
| Timeline |
| YOMA STRATEGIC HLDG |
| HANOVER INSURANCE |
YOMA STRATEGIC and HANOVER INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YOMA STRATEGIC and HANOVER INSURANCE
The main advantage of trading using opposite YOMA STRATEGIC and HANOVER INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YOMA STRATEGIC 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.| YOMA STRATEGIC vs. CarsalesCom | YOMA STRATEGIC vs. Eidesvik Offshore ASA | YOMA STRATEGIC vs. Chiba Bank | YOMA STRATEGIC vs. TYSNES SPAREBANK NK |
| HANOVER INSURANCE vs. TOREX SEMICONDUCTOR LTD | HANOVER INSURANCE vs. Zijin Mining Group | HANOVER INSURANCE vs. Lendlease Group | HANOVER INSURANCE vs. Global Ship Lease |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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