Correlation Between Hanover Insurance and WiMi Hologram
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and WiMi Hologram 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 WiMi Hologram into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Hanover Insurance and WiMi Hologram Cloud, you can compare the effects of market volatilities on Hanover Insurance and WiMi Hologram 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 WiMi Hologram. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and WiMi Hologram.
Diversification Opportunities for Hanover Insurance and WiMi Hologram
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hanover and WiMi is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and WiMi Hologram Cloud in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WiMi Hologram Cloud 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 The Hanover Insurance are associated (or correlated) with WiMi Hologram. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WiMi Hologram Cloud has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and WiMi Hologram go up and down completely randomly.
Pair Corralation between Hanover Insurance and WiMi Hologram
Considering the 90-day investment horizon The Hanover Insurance is expected to generate 0.15 times more return on investment than WiMi Hologram. However, The Hanover Insurance is 6.71 times less risky than WiMi Hologram. It trades about 0.14 of its potential returns per unit of risk. WiMi Hologram Cloud is currently generating about -0.1 per unit of risk. 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 | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Hanover Insurance vs. WiMi Hologram Cloud
Performance |
Timeline |
Hanover Insurance |
WiMi Hologram Cloud |
Hanover Insurance and WiMi Hologram Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hanover Insurance and WiMi Hologram
The main advantage of trading using opposite Hanover Insurance and WiMi Hologram positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, WiMi Hologram 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 WiMi Hologram will offset losses from the drop in WiMi Hologram's long position.Hanover Insurance vs. Horace Mann Educators | Hanover Insurance vs. Kemper | Hanover Insurance vs. RLI Corp | Hanover Insurance vs. Global Indemnity PLC |
WiMi Hologram vs. National CineMedia | WiMi Hologram vs. Baosheng Media Group | WiMi Hologram vs. Townsquare Media | WiMi Hologram vs. Dolphin Entertainment |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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