Correlation Between Hanover Insurance and 49456BAW1
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By analyzing existing cross correlation between The Hanover Insurance and KMI 545 01 AUG 52, you can compare the effects of market volatilities on Hanover Insurance and 49456BAW1 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 49456BAW1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and 49456BAW1.
Diversification Opportunities for Hanover Insurance and 49456BAW1
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanover and 49456BAW1 is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and KMI 545 01 AUG 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KMI 545 01 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 49456BAW1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KMI 545 01 has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and 49456BAW1 go up and down completely randomly.
Pair Corralation between Hanover Insurance and 49456BAW1
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 1.41 times more return on investment than 49456BAW1. However, Hanover Insurance is 1.41 times more volatile than KMI 545 01 AUG 52. It trades about 0.12 of its potential returns per unit of risk. KMI 545 01 AUG 52 is currently generating about 0.02 per unit of risk. If you would invest 13,302 in The Hanover Insurance on September 3, 2024 and sell it today you would earn a total of 3,199 from holding The Hanover Insurance or generate 24.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.58% |
| Values | Daily Returns |
The Hanover Insurance vs. KMI 545 01 AUG 52
Performance |
| Timeline |
| Hanover Insurance |
| KMI 545 01 |
Hanover Insurance and 49456BAW1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and 49456BAW1
The main advantage of trading using opposite Hanover Insurance and 49456BAW1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, 49456BAW1 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 49456BAW1 will offset losses from the drop in 49456BAW1's long position.| Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
| 49456BAW1 vs. Aspen Insurance Holdings | 49456BAW1 vs. Globalfoundries | 49456BAW1 vs. Aegon NV ADR | 49456BAW1 vs. The Hanover Insurance |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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