Correlation Between Hanover Insurance and SOCGEN
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By analyzing existing cross correlation between The Hanover Insurance and SOCGEN 3 22 JAN 30, you can compare the effects of market volatilities on Hanover Insurance and SOCGEN 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 SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and SOCGEN.
Diversification Opportunities for Hanover Insurance and SOCGEN
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanover and SOCGEN is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and SOCGEN 3 22 JAN 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 3 22 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 SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 3 22 has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and SOCGEN go up and down completely randomly.
Pair Corralation between Hanover Insurance and SOCGEN
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 0.97 times more return on investment than SOCGEN. However, The Hanover Insurance is 1.04 times less risky than SOCGEN. It trades about 0.03 of its potential returns per unit of risk. SOCGEN 3 22 JAN 30 is currently generating about 0.01 per unit of risk. If you would invest 12,984 in The Hanover Insurance on September 12, 2024 and sell it today you would earn a total of 2,522 from holding The Hanover Insurance or generate 19.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 30.3% |
| Values | Daily Returns |
The Hanover Insurance vs. SOCGEN 3 22 JAN 30
Performance |
| Timeline |
| Hanover Insurance |
| SOCGEN 3 22 |
Hanover Insurance and SOCGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and SOCGEN
The main advantage of trading using opposite Hanover Insurance and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN'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 |
| SOCGEN vs. Westrock Coffee | SOCGEN vs. Boston Beer | SOCGEN vs. Universal | SOCGEN 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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