DG vs THG: Correlation
Measured on weekly returns over the past three years, Dollar General (DG) and Hanover Insurance Group Inc (THG) carry a correlation of -0.20, a negative link.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are DG and THG?
Over the past 3 years, DG and THG moved with a correlation of -0.20, which is negative, meaning they tend to move in opposite directions. The link has tightened recently: the 1-year correlation (-0.06) runs above the 3-year figure (-0.20). Over 5 years the correlation is -0.04, and the annualized covariance of weekly returns is -165.3 %².
Within DG's tracked universe of 32 assets, THG comes in at #26 by 3-year correlation. The last year tells two different stories: THG led by 17.6 percentage points, +15.5% for DG against +33.1% for THG. Note the risk asymmetry: DG runs 1.8 times the annualized volatility of the other leg, so equal-weighting the two is not an equal-risk position.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
DG vs THG: side by side
| DG (Dollar General) | THG (Hanover Insurance Group Inc) | |
|---|---|---|
| 1-year return | +15.5% | +33.1% |
| 5-year return | -39.3% | +81.9% |
| Volatility (ann.) | 38.5% | 21.9% |
| Beta vs S&P 500 | 0.11 | 0.24 |
| Max drawdown (3Y) | -56.6% | -14.0% |
| Market cap | $27.8B | $7.9B |
| P/E (trailing) | 17.4 | 10.9 |
| Dividend yield | 0.00% | 1.64% |
| Sector / category | Consumer Staples | US Listed |
Year-by-year returns
| Year | DG | THG |
|---|---|---|
| 2022 | +5.6% | +5.4% |
| 2023 | -44.1% | -7.6% |
| 2024 | -43.1% | +30.6% |
| 2025 | +79.6% | +20.7% |
| 2026 | -3.8% | +25.9% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are DG and THG good diversifiers for each other?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
FAQ
What is the correlation between DG and THG?
The DG/THG correlation stands at -0.20 on a 3-year window (1 year: -0.06, 5 years: -0.04), computed from weekly returns as of 2026-08-27.
Is THG a good diversifier for DG?
By historical standards, yes. A correlation of -0.20 means the two rarely move for the same reasons.
What does a correlation of -0.20 mean?
A reading of -0.20 sits on a scale from −1 (opposite moves) through 0 (unrelated) to +1 (identical moves). Correlation captures direction, not magnitude or performance.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/dg-vs-thg.json
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Related comparisons
Hubs: DG correlations · THG correlations
