Hanover Insurance Correlations

AF4 Stock

EUR 153.00 1.00 0.65%

The current 90-days correlation between Hanover Insurance and Harmony Gold Mining is -0.12 (i.e., Good diversification). The correlation of Hanover Insurance is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Hanover Insurance Correlation With Market

Modest diversification

The correlation between The Hanover Insurance and DJI is 0.21 (i.e., Modest diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and DJI in the same portfolio, assuming nothing else is changed.

The ability to find closely correlated positions to Hanover Insurance could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hanover Insurance when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hanover Insurance - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Hanover Insurance to buy it.

Moving together with Hanover Stock

0.78	WR1	W R Berkley	Pair Corr
0.61	DTE	Deutsche Telekom	Pair Corr

Moving against Hanover Stock

0.53	GD6	Ramsay Gnrale de Earnings Call Today	Pair Corr
0.34	GIB	GSW Immobilien AG	Pair Corr
0.32	QFI	American Financial	Pair Corr
0.53	HUN2	Beijing Enterprises Water	Pair Corr
0.51	SXV	Xinhua Winshare Publ	Pair Corr

Related Correlations Analysis

	ZYR1	HAM	9JD	GM6	I43	D2V	C8U	HP3A
ZYR1		-0.15	0.03	0.0	0.05	0.22	-0.7	0.14	ZYR1
HAM	-0.15		-0.74	0.0	0.16	0.6	0.05	0.37	HAM
9JD	0.03	-0.74		0.0	-0.2	-0.8	0.23	-0.55	9JD
GM6	0.0	0.0	0.0		0.0	0.0	0.0	0.0	GM6
I43	0.05	0.16	-0.2	0.0		0.42	-0.22	-0.07	I43
D2V	0.22	0.6	-0.8	0.0	0.42		-0.4	0.59	D2V
C8U	-0.7	0.05	0.23	0.0	-0.22	-0.4		-0.39	C8U
HP3A	0.14	0.37	-0.55	0.0	-0.07	0.59	-0.39		HP3A
	ZYR1	HAM	9JD	GM6	I43	D2V	C8U	HP3A

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.

High positive correlations

D2V	+ 0.6	HAM
HP3A	+ 0.59	D2V
D2V	+ 0.42	I43
HP3A	+ 0.37	HAM
C8U	+ 0.23	9JD
D2V	+ 0.22	ZYR1

High negative correlations

D2V	- 0.8	9JD
9JD	- 0.74	HAM
C8U	- 0.7	ZYR1
HP3A	- 0.55	9JD
C8U	- 0.4	D2V
HP3A	- 0.39	C8U

Risk-Adjusted Indicators

There is a big difference between Hanover Stock performing well and Hanover Insurance Company doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Hanover Insurance's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

	Mean Deviation	Jensen Alpha	Sortino Ratio	Treynor Ratio	Semi Deviation	Expected Shortfall	Potential Upside	Value @Risk	Maximum Drawdown
ZYR1	3.12	0.07	0.02	(0.08)	4.03	(4.05)	7.74	(7.22)	19.89
HAM	2.23	0.25	0.08	0.70	2.43	(2.79)	5.45	(4.27)	11.82
9JD	2.26	(0.46)	0.00	1.19	0.00	0.00	4.12	(4.96)	21.40
GM6	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00
I43	1.32	0.21	0.12	(0.43)	1.64	(1.46)	2.66	(2.33)	11.20
D2V	1.38	0.28	0.15	(0.65)	1.54	(1.52)	2.74	(2.71)	13.44
C8U	3.26	0.03	0.01	0.02	3.75	(4.02)	6.58	(6.94)	31.26
HP3A	2.99	0.28	0.08	0.61	3.50	(3.37)	7.42	(6.03)	32.85

Be your own money manager

Our tools can tell you how much better you can do entering a position in Hanover Insurance without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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