Correlation Between Hanover Insurance and Repligen
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Repligen 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 Repligen 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 Repligen, you can compare the effects of market volatilities on Hanover Insurance and Repligen 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 Repligen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Repligen.
Diversification Opportunities for Hanover Insurance and Repligen
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanover and Repligen is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Repligen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Repligen 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 Repligen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Repligen has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Repligen go up and down completely randomly.
Pair Corralation between Hanover Insurance and Repligen
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 0.45 times more return on investment than Repligen. However, The Hanover Insurance is 2.24 times less risky than Repligen. It trades about 0.1 of its potential returns per unit of risk. Repligen is currently generating about 0.02 per unit of risk. If you would invest 13,206 in The Hanover Insurance on November 3, 2024 and sell it today you would earn a total of 2,103 from holding The Hanover Insurance or generate 15.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hanover Insurance vs. Repligen
Performance |
| Timeline |
| Hanover Insurance |
| Repligen |
Hanover Insurance and Repligen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Repligen
The main advantage of trading using opposite Hanover Insurance and Repligen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Repligen 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 Repligen will offset losses from the drop in Repligen's long position.| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
| Repligen vs. Intuitive Surgical | Repligen vs. ResMed Inc | Repligen vs. Merit Medical Systems | Repligen vs. ICU Medical |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |