Correlation Between Hanover Insurance and WALGREENS
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By analyzing existing cross correlation between The Hanover Insurance and WALGREENS BOOTS ALLIANCE, you can compare the effects of market volatilities on Hanover Insurance and WALGREENS 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 WALGREENS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and WALGREENS.
Diversification Opportunities for Hanover Insurance and WALGREENS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hanover and WALGREENS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and WALGREENS BOOTS ALLIANCE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WALGREENS BOOTS ALLIANCE 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 WALGREENS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WALGREENS BOOTS ALLIANCE has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and WALGREENS go up and down completely randomly.
Pair Corralation between Hanover Insurance and WALGREENS
Considering the 90-day investment horizon Hanover Insurance is expected to generate 3.67 times less return on investment than WALGREENS. But when comparing it to its historical volatility, The Hanover Insurance is 4.48 times less risky than WALGREENS. It trades about 0.26 of its potential returns per unit of risk. WALGREENS BOOTS ALLIANCE is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 6,550 in WALGREENS BOOTS ALLIANCE on August 28, 2024 and sell it today you would earn a total of 1,593 from holding WALGREENS BOOTS ALLIANCE or generate 24.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.82% |
| Values | Daily Returns |
The Hanover Insurance vs. WALGREENS BOOTS ALLIANCE
Performance |
| Timeline |
| Hanover Insurance |
| WALGREENS BOOTS ALLIANCE |
Hanover Insurance and WALGREENS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and WALGREENS
The main advantage of trading using opposite Hanover Insurance and WALGREENS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, WALGREENS 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 WALGREENS will offset losses from the drop in WALGREENS's long position.| Hanover Insurance vs. Fiverr International | Hanover Insurance vs. Pinterest | Hanover Insurance vs. Upstart Holdings | Hanover Insurance vs. Fastly Inc |
| WALGREENS vs. Pekin Life Insurance | WALGREENS vs. Cincinnati Financial | WALGREENS vs. The Hanover Insurance | WALGREENS vs. Boston Beer |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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