Correlation Between Hanover Insurance and 05565QDH8
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By analyzing existing cross correlation between The Hanover Insurance and BP CAP MKTS, you can compare the effects of market volatilities on Hanover Insurance and 05565QDH8 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 05565QDH8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and 05565QDH8.
Diversification Opportunities for Hanover Insurance and 05565QDH8
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Hanover and 05565QDH8 is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and BP CAP MKTS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BP CAP MKTS 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 05565QDH8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BP CAP MKTS has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and 05565QDH8 go up and down completely randomly.
Pair Corralation between Hanover Insurance and 05565QDH8
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 4.37 times more return on investment than 05565QDH8. However, Hanover Insurance is 4.37 times more volatile than BP CAP MKTS. It trades about 0.1 of its potential returns per unit of risk. BP CAP MKTS is currently generating about -0.08 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 Together |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
The Hanover Insurance vs. BP CAP MKTS
Performance |
| Timeline |
| Hanover Insurance |
| BP CAP MKTS |
Hanover Insurance and 05565QDH8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and 05565QDH8
The main advantage of trading using opposite Hanover Insurance and 05565QDH8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, 05565QDH8 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 05565QDH8 will offset losses from the drop in 05565QDH8's long position.| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
| 05565QDH8 vs. AEP TEX INC | 05565QDH8 vs. US BANK NATIONAL | 05565QDH8 vs. Valley National Bancorp | 05565QDH8 vs. LightPath Technologies |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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