Correlation Between 202795JU5 and Hanover Insurance
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By analyzing existing cross correlation between EXC 275 01 SEP 51 and The Hanover Insurance, you can compare the effects of market volatilities on 202795JU5 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 202795JU5 with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 202795JU5 and Hanover Insurance.
Diversification Opportunities for 202795JU5 and Hanover Insurance
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between 202795JU5 and Hanover is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding EXC 275 01 SEP 51 and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and 202795JU5 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 EXC 275 01 SEP 51 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 202795JU5 i.e., 202795JU5 and Hanover Insurance go up and down completely randomly.
Pair Corralation between 202795JU5 and Hanover Insurance
Assuming the 90 days trading horizon 202795JU5 is expected to generate 7.21 times less return on investment than Hanover Insurance. In addition to that, 202795JU5 is 1.12 times more volatile than The Hanover Insurance. It trades about 0.05 of its total potential returns per unit of risk. The Hanover Insurance is currently generating about 0.41 per unit of volatility. If you would invest 14,790 in The Hanover Insurance on September 2, 2024 and sell it today you would earn a total of 1,711 from holding The Hanover Insurance or generate 11.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
EXC 275 01 SEP 51 vs. The Hanover Insurance
Performance |
| Timeline |
| EXC 275 01 |
| Hanover Insurance |
202795JU5 and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 202795JU5 and Hanover Insurance
The main advantage of trading using opposite 202795JU5 and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 202795JU5 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.| 202795JU5 vs. NiSource | 202795JU5 vs. Suburban Propane Partners | 202795JU5 vs. Ryman Hospitality Properties | 202795JU5 vs. Playa Hotels Resorts |
| Hanover Insurance vs. Selective Insurance Group | Hanover Insurance vs. Aquagold International | Hanover Insurance vs. Thrivent High Yield | Hanover Insurance vs. Morningstar Unconstrained Allocation |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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