Correlation Between Sabre Insurance and Hanover Insurance
Can any of the company-specific risk be diversified away by investing in both Sabre Insurance and Hanover Insurance 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 Sabre Insurance and Hanover Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabre Insurance Group and The Hanover Insurance, you can compare the effects of market volatilities on Sabre Insurance 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 Sabre Insurance with a short position of Hanover Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabre Insurance and Hanover Insurance.
Diversification Opportunities for Sabre Insurance and Hanover Insurance
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sabre and Hanover is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sabre Insurance Group and The Hanover Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanover Insurance and Sabre 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 Sabre Insurance Group 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 Sabre Insurance i.e., Sabre Insurance and Hanover Insurance go up and down completely randomly.
Pair Corralation between Sabre Insurance and Hanover Insurance
If you would invest 15,350 in The Hanover Insurance on December 27, 2024 and sell it today you would earn a total of 2,094 from holding The Hanover Insurance or generate 13.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Sabre Insurance Group vs. The Hanover Insurance
Performance |
Timeline |
Sabre Insurance Group |
Hanover Insurance |
Sabre Insurance and Hanover Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sabre Insurance and Hanover Insurance
The main advantage of trading using opposite Sabre Insurance and Hanover Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabre Insurance 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.Sabre Insurance vs. Lincoln Electric Holdings | Sabre Insurance vs. World Houseware Limited | Sabre Insurance vs. Finnair Oyj | Sabre Insurance vs. EvoAir Holdings |
Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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