Correlation Between Hanover Insurance and FORTUNE
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By analyzing existing cross correlation between The Hanover Insurance and FORTUNE BRANDS HOME, you can compare the effects of market volatilities on Hanover Insurance and FORTUNE 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 FORTUNE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and FORTUNE.
Diversification Opportunities for Hanover Insurance and FORTUNE
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanover and FORTUNE is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and FORTUNE BRANDS HOME in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORTUNE BRANDS HOME 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 FORTUNE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORTUNE BRANDS HOME has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and FORTUNE go up and down completely randomly.
Pair Corralation between Hanover Insurance and FORTUNE
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 4.99 times more return on investment than FORTUNE. However, Hanover Insurance is 4.99 times more volatile than FORTUNE BRANDS HOME. It trades about 0.1 of its potential returns per unit of risk. FORTUNE BRANDS HOME is currently generating about 0.02 per unit of risk. If you would invest 12,111 in The Hanover Insurance on August 26, 2024 and sell it today you would earn a total of 4,249 from holding The Hanover Insurance or generate 35.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.98% |
| Values | Daily Returns |
The Hanover Insurance vs. FORTUNE BRANDS HOME
Performance |
| Timeline |
| Hanover Insurance |
| FORTUNE BRANDS HOME |
Hanover Insurance and FORTUNE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and FORTUNE
The main advantage of trading using opposite Hanover Insurance and FORTUNE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, FORTUNE 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 FORTUNE will offset losses from the drop in FORTUNE's long position.| Hanover Insurance vs. Fiverr International | Hanover Insurance vs. Pinterest | Hanover Insurance vs. Upstart Holdings | Hanover Insurance vs. Fastly Inc |
| FORTUNE vs. Western Acquisition Ventures | FORTUNE vs. Nomura Holdings ADR | FORTUNE vs. The Hanover Insurance | FORTUNE vs. NI Holdings |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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