Correlation Between Hanover Insurance and Evertz Technologies
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Evertz Technologies 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 Hanover Insurance and Evertz Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hanover Insurance and Evertz Technologies Limited, you can compare the effects of market volatilities on Hanover Insurance and Evertz Technologies 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 Hanover Insurance with a short position of Evertz Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Evertz Technologies.
Diversification Opportunities for Hanover Insurance and Evertz Technologies
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hanover and Evertz is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Evertz Technologies Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertz Technologies and Hanover Insurance 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 The Hanover Insurance are associated (or correlated) with Evertz Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertz Technologies has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Evertz Technologies go up and down completely randomly.
Pair Corralation between Hanover Insurance and Evertz Technologies
Considering the 90-day investment horizon The Hanover Insurance is expected to under-perform the Evertz Technologies. In addition to that, Hanover Insurance is 1.41 times more volatile than Evertz Technologies Limited. It trades about -0.22 of its total potential returns per unit of risk. Evertz Technologies Limited is currently generating about 0.05 per unit of volatility. If you would invest 868.00 in Evertz Technologies Limited on September 14, 2024 and sell it today you would earn a total of 6.00 from holding Evertz Technologies Limited or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Hanover Insurance vs. Evertz Technologies Limited
Performance |
| Timeline |
| Hanover Insurance |
| Evertz Technologies |
Hanover Insurance and Evertz Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Evertz Technologies
The main advantage of trading using opposite Hanover Insurance and Evertz Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Evertz Technologies 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 Evertz Technologies will offset losses from the drop in Evertz Technologies' long position.| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
| Evertz Technologies vs. Deere Company | Evertz Technologies vs. Caterpillar | Evertz Technologies vs. Lion Electric Corp | Evertz Technologies vs. Nikola Corp |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |