Correlation Between 595112BZ5 and Hanover Insurance
Specify exactly 2 symbols:
By analyzing existing cross correlation between MU 5875 09 FEB 33 and The Hanover Insurance, you can compare the effects of market volatilities on 595112BZ5 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 595112BZ5 with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of 595112BZ5 and Hanover Insurance.
Diversification Opportunities for 595112BZ5 and Hanover Insurance
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 595112BZ5 and Hanover is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding MU 5875 09 FEB 33 and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and 595112BZ5 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 MU 5875 09 FEB 33 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 595112BZ5 i.e., 595112BZ5 and Hanover Insurance go up and down completely randomly.
Pair Corralation between 595112BZ5 and Hanover Insurance
Assuming the 90 days trading horizon 595112BZ5 is expected to generate 82.81 times less return on investment than Hanover Insurance. But when comparing it to its historical volatility, MU 5875 09 FEB 33 is 2.05 times less risky than Hanover Insurance. It trades about 0.0 of its potential returns per unit of risk. The Hanover Insurance is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 12,721 in The Hanover Insurance on September 2, 2024 and sell it today you would earn a total of 3,780 from holding The Hanover Insurance or generate 29.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
MU 5875 09 FEB 33 vs. The Hanover Insurance
Performance |
| Timeline |
| MU 5875 09 |
| Hanover Insurance |
595112BZ5 and Hanover Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 595112BZ5 and Hanover Insurance
The main advantage of trading using opposite 595112BZ5 and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 595112BZ5 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.| 595112BZ5 vs. ACG Metals Limited | 595112BZ5 vs. QBE Insurance Group | 595112BZ5 vs. Sun Life Financial | 595112BZ5 vs. Summit Materials |
| 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |