Correlation Between Stagwell and HANOVER
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By analyzing existing cross correlation between Stagwell and HANOVER INS GROUP, you can compare the effects of market volatilities on Stagwell and HANOVER 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 Stagwell with a short position of HANOVER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stagwell and HANOVER.
Diversification Opportunities for Stagwell and HANOVER
Very good diversification
The 3 months correlation between Stagwell and HANOVER is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Stagwell and HANOVER INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANOVER INS GROUP and Stagwell 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 Stagwell are associated (or correlated) with HANOVER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANOVER INS GROUP has no effect on the direction of Stagwell i.e., Stagwell and HANOVER go up and down completely randomly.
Pair Corralation between Stagwell and HANOVER
Given the investment horizon of 90 days Stagwell is expected to generate 7.9 times more return on investment than HANOVER. However, Stagwell is 7.9 times more volatile than HANOVER INS GROUP. It trades about 0.45 of its potential returns per unit of risk. HANOVER INS GROUP is currently generating about -0.15 per unit of risk. If you would invest 621.00 in Stagwell on September 1, 2024 and sell it today you would earn a total of 165.00 from holding Stagwell or generate 26.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Stagwell vs. HANOVER INS GROUP
Performance |
| Timeline |
| Stagwell |
| HANOVER INS GROUP |
Stagwell and HANOVER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stagwell and HANOVER
The main advantage of trading using opposite Stagwell and HANOVER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stagwell position performs unexpectedly, HANOVER 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 will offset losses from the drop in HANOVER's long position.| Stagwell vs. ADTRAN Inc | Stagwell vs. Belden Inc | Stagwell vs. ADC Therapeutics SA | Stagwell vs. Comtech Telecommunications Corp |
| HANOVER vs. Weibo Corp | HANOVER vs. Arrow Electronics | HANOVER vs. The Gap, | HANOVER vs. Asbury Automotive Group |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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