Correlation Between Hanover Insurance and Mason Industrial
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Mason Industrial 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 Mason Industrial 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 Mason Industrial Technology, you can compare the effects of market volatilities on Hanover Insurance and Mason Industrial 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 Mason Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Mason Industrial.
Diversification Opportunities for Hanover Insurance and Mason Industrial
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanover and Mason is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Mason Industrial Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mason Industrial Tec 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 Mason Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mason Industrial Tec has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Mason Industrial go up and down completely randomly.
Pair Corralation between Hanover Insurance and Mason Industrial
If you would invest 14,714 in The Hanover Insurance on September 4, 2024 and sell it today you would earn a total of 1,538 from holding The Hanover Insurance or generate 10.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Hanover Insurance vs. Mason Industrial Technology
Performance |
| Timeline |
| Hanover Insurance |
| Mason Industrial Tec |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Hanover Insurance and Mason Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Mason Industrial
The main advantage of trading using opposite Hanover Insurance and Mason Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Mason Industrial 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 Mason Industrial will offset losses from the drop in Mason Industrial's long position.| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
| Mason Industrial vs. JBG SMITH Properties | Mason Industrial vs. JD Sports Fashion | Mason Industrial vs. HNI Corp | Mason Industrial vs. Warner Music 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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