Correlation Between Hanover Insurance and 512807AT5
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By analyzing existing cross correlation between The Hanover Insurance and LAM RESEARCH PORATION, you can compare the effects of market volatilities on Hanover Insurance and 512807AT5 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 512807AT5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and 512807AT5.
Diversification Opportunities for Hanover Insurance and 512807AT5
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanover and 512807AT5 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and LAM RESEARCH PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LAM RESEARCH PORATION 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 512807AT5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LAM RESEARCH PORATION has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and 512807AT5 go up and down completely randomly.
Pair Corralation between Hanover Insurance and 512807AT5
Considering the 90-day investment horizon The Hanover Insurance is expected to under-perform the 512807AT5. But the stock apears to be less risky and, when comparing its historical volatility, The Hanover Insurance is 1.21 times less risky than 512807AT5. The stock trades about -0.22 of its potential returns per unit of risk. The LAM RESEARCH PORATION is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 9,379 in LAM RESEARCH PORATION on September 12, 2024 and sell it today you would lose (70.00) from holding LAM RESEARCH PORATION or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
The Hanover Insurance vs. LAM RESEARCH PORATION
Performance |
| Timeline |
| Hanover Insurance |
| LAM RESEARCH PORATION |
Hanover Insurance and 512807AT5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and 512807AT5
The main advantage of trading using opposite Hanover Insurance and 512807AT5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, 512807AT5 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 512807AT5 will offset losses from the drop in 512807AT5's long position.| Hanover Insurance vs. Aeye Inc | Hanover Insurance vs. Ep Emerging Markets | Hanover Insurance vs. LiCycle Holdings Corp | Hanover Insurance vs. SEI Investments |
| 512807AT5 vs. Nike Inc | 512807AT5 vs. Air Lease | 512807AT5 vs. Tandy Leather Factory | 512807AT5 vs. Under Armour C |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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