Correlation Between Hanover Insurance and Haverty Furniture
Can any of the company-specific risk be diversified away by investing in both Hanover Insurance and Haverty Furniture 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 Haverty Furniture 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 Haverty Furniture Companies, you can compare the effects of market volatilities on Hanover Insurance and Haverty Furniture 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 Haverty Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hanover Insurance and Haverty Furniture.
Diversification Opportunities for Hanover Insurance and Haverty Furniture
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hanover and Haverty is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Hanover Insurance and Haverty Furniture Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haverty Furniture 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 Haverty Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haverty Furniture has no effect on the direction of Hanover Insurance i.e., Hanover Insurance and Haverty Furniture go up and down completely randomly.
Pair Corralation between Hanover Insurance and Haverty Furniture
Considering the 90-day investment horizon Hanover Insurance is expected to generate 2.0 times less return on investment than Haverty Furniture. But when comparing it to its historical volatility, The Hanover Insurance is 1.83 times less risky than Haverty Furniture. It trades about 0.02 of its potential returns per unit of risk. Haverty Furniture Companies is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,366 in Haverty Furniture Companies on September 5, 2025 and sell it today you would earn a total of 29.00 from holding Haverty Furniture Companies or generate 1.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Hanover Insurance vs. Haverty Furniture Companies
Performance |
| Timeline |
| Hanover Insurance |
| Haverty Furniture |
Hanover Insurance and Haverty Furniture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hanover Insurance and Haverty Furniture
The main advantage of trading using opposite Hanover Insurance and Haverty Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hanover Insurance position performs unexpectedly, Haverty Furniture 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 Haverty Furniture will offset losses from the drop in Haverty Furniture's long position.| Hanover Insurance vs. Progress Software | Hanover Insurance vs. Prism Software | Hanover Insurance vs. Upland Software | Hanover Insurance vs. Asure Software |
| Haverty Furniture vs. Home Loan Financial | Haverty Furniture vs. InPlay Oil Corp | Haverty Furniture vs. LG Display Co | Haverty Furniture vs. Japan Display ADR |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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