Correlation Between Citigroup and Hanover Insurance
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By analyzing existing cross correlation between Citigroup and The Hanover Insurance, you can compare the effects of market volatilities on Citigroup and Hanover Insurance 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 Citigroup with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Hanover Insurance.
Diversification Opportunities for Citigroup and Hanover Insurance
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citigroup and Hanover is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and Citigroup 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 Citigroup are associated (or correlated) with Hanover Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanover Insurance has no effect on the direction of Citigroup i.e., Citigroup and Hanover Insurance go up and down completely randomly.
Pair Corralation between Citigroup and Hanover Insurance
Assuming the 90 days trading horizon Citigroup is expected to generate 1.06 times less return on investment than Hanover Insurance. In addition to that, Citigroup is 1.52 times more volatile than The Hanover Insurance. It trades about 0.29 of its total potential returns per unit of risk. The Hanover Insurance is currently generating about 0.47 per unit of volatility. If you would invest 13,400 in The Hanover Insurance on September 3, 2024 and sell it today you would earn a total of 2,400 from holding The Hanover Insurance or generate 17.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citigroup vs. The Hanover Insurance
Performance |
| Timeline |
| Citigroup |
| Hanover Insurance |
Citigroup and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Hanover Insurance
The main advantage of trading using opposite Citigroup and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Hanover Insurance 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 Hanover Insurance will offset losses from the drop in Hanover Insurance's long position.| Citigroup vs. Data3 Limited | Citigroup vs. Datadog | Citigroup vs. Apollo Investment Corp | Citigroup vs. National Storage Affiliates |
| Hanover Insurance vs. Datadog | Hanover Insurance vs. CARSALESCOM | Hanover Insurance vs. DATANG INTL POW | Hanover Insurance vs. Grupo Carso SAB |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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