Correlation Between Hanover Insurance and ONEOK
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By analyzing existing cross correlation between The Hanover Insurance and ONEOK INC NEW, you can compare the effects of market volatilities on Hanover Insurance and ONEOK 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 ONEOK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and ONEOK.
Diversification Opportunities for Hanover Insurance and ONEOK
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hanover and ONEOK is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and ONEOK INC NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ONEOK INC NEW 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 ONEOK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ONEOK INC NEW has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and ONEOK go up and down completely randomly.
Pair Corralation between Hanover Insurance and ONEOK
Considering the 90-day investment horizon Hanover Insurance is expected to generate 28.57 times less return on investment than ONEOK. But when comparing it to its historical volatility, The Hanover Insurance is 44.64 times less risky than ONEOK. It trades about 0.08 of its potential returns per unit of risk. ONEOK INC NEW is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,043 in ONEOK INC NEW on September 12, 2024 and sell it today you would lose (69.00) from holding ONEOK INC NEW or give up 0.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.25% |
| Values | Daily Returns |
The Hanover Insurance vs. ONEOK INC NEW
Performance |
| Timeline |
| Hanover Insurance |
| ONEOK INC NEW |
Hanover Insurance and ONEOK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and ONEOK
The main advantage of trading using opposite Hanover Insurance and ONEOK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, ONEOK 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 ONEOK will offset losses from the drop in ONEOK'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 |
| ONEOK vs. Discover Financial Services | ONEOK vs. Univest Pennsylvania | ONEOK vs. MI Homes | ONEOK vs. Artisan Partners Asset |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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