ol.interaction.Hover is an interaction to do something when hovering a feature.
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The cursor options lets you spécify the cursor when hovering (or use setCursor())
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The featureFilter and layerFilter lets you specify which features / layers are concerned.
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You can use handleEvent options of the ol.interaction.Interaction to extend the interaction.
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The interaction fires hover, enter, leave events
you can use to get the feature/layer that is hovering and do some stuff (show a popup, display information, change cursor, ...).