Correlation Between HANOVER INSURANCE and CORNISH METALS
Can any of the company-specific risk be diversified away by investing in both HANOVER INSURANCE and CORNISH METALS 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 CORNISH METALS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HANOVER INSURANCE and CORNISH METALS INC, you can compare the effects of market volatilities on HANOVER INSURANCE and CORNISH METALS 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 CORNISH METALS. Check out your portfolio center. Please also check ongoing floating volatility patterns of HANOVER INSURANCE and CORNISH METALS.
Diversification Opportunities for HANOVER INSURANCE and CORNISH METALS
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HANOVER and CORNISH is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding HANOVER INSURANCE and CORNISH METALS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CORNISH METALS INC 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 CORNISH METALS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CORNISH METALS INC has no effect on the direction of HANOVER INSURANCE i.e., HANOVER INSURANCE and CORNISH METALS go up and down completely randomly.
Pair Corralation between HANOVER INSURANCE and CORNISH METALS
Assuming the 90 days trading horizon HANOVER INSURANCE is expected to generate 2.71 times less return on investment than CORNISH METALS. But when comparing it to its historical volatility, HANOVER INSURANCE is 3.46 times less risky than CORNISH METALS. It trades about 0.02 of its potential returns per unit of risk. CORNISH METALS INC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 8.60 in CORNISH METALS INC on July 20, 2025 and sell it today you would lose (0.25) from holding CORNISH METALS INC or give up 2.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HANOVER INSURANCE vs. CORNISH METALS INC
Performance |
| Timeline |
| HANOVER INSURANCE |
| CORNISH METALS INC |
HANOVER INSURANCE and CORNISH METALS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HANOVER INSURANCE and CORNISH METALS
The main advantage of trading using opposite HANOVER INSURANCE and CORNISH METALS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HANOVER INSURANCE position performs unexpectedly, CORNISH METALS 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 CORNISH METALS will offset losses from the drop in CORNISH METALS's long position.| HANOVER INSURANCE vs. Apple Inc | HANOVER INSURANCE vs. Microsoft | HANOVER INSURANCE vs. Microsoft | HANOVER INSURANCE vs. Amazon Inc |
| CORNISH METALS vs. Rio Tinto Group | CORNISH METALS vs. Mineral Resources Limited | CORNISH METALS vs. Liontown Resources Limited | CORNISH METALS vs. NEXA RESOURCES SA |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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