Correlation Between HANOVER INSURANCE and AURUBIS -

Can any of the company-specific risk be diversified away by investing in both HANOVER INSURANCE and AURUBIS - at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining HANOVER INSURANCE and AURUBIS - into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between HANOVER INSURANCE and AURUBIS Dusseldorf, you can compare the effects of market volatilities on HANOVER INSURANCE and AURUBIS - 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 AURUBIS -. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANOVER INSURANCE and AURUBIS -.

Diversification Opportunities for HANOVER INSURANCE and AURUBIS -

0.63

Correlation Coefficient

HANOVER INSURANCE  AURUBIS -

Poor diversification

The 3 months correlation between HANOVER and AURUBIS is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding HANOVER INSURANCE and AURUBIS Dusseldorf in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AURUBIS Dusseldorf 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 HANOVER INSURANCE are associated (or correlated) with AURUBIS -. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AURUBIS Dusseldorf has no effect on the direction of HANOVER INSURANCE i.e., HANOVER INSURANCE and AURUBIS - go up and down completely randomly.

Pair Corralation between HANOVER INSURANCE and AURUBIS -

Assuming the 90 days trading horizon HANOVER INSURANCE is expected to generate 1.77 times less return on investment than AURUBIS -. But when comparing it to its historical volatility, HANOVER INSURANCE is 1.15 times less risky than AURUBIS -. It trades about 0.08 of its potential returns per unit of risk. AURUBIS Dusseldorf is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  7,750  in AURUBIS Dusseldorf on December 22, 2024 and sell it today you would earn a total of  1,190  from holding AURUBIS Dusseldorf or generate 15.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

HANOVER INSURANCE  vs.  AURUBIS Dusseldorf

HANOVER INSURANCE

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in HANOVER INSURANCE are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, HANOVER INSURANCE may actually be approaching a critical reversion point that can send shares even higher in April 2025.

AURUBIS Dusseldorf

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in AURUBIS Dusseldorf are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, AURUBIS - unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HANOVER INSURANCE and AURUBIS -

The main advantage of trading using opposite HANOVER INSURANCE and AURUBIS - positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANOVER INSURANCE position performs unexpectedly, AURUBIS - 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 AURUBIS - will offset losses from the drop in AURUBIS -'s long position.

The idea behind HANOVER INSURANCE and AURUBIS Dusseldorf pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.