Correlation Between First Ship and TRAVELERS
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By analyzing existing cross correlation between First Ship Lease and TRAVELERS INC 535, you can compare the effects of market volatilities on First Ship and TRAVELERS 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 First Ship with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Ship and TRAVELERS.
Diversification Opportunities for First Ship and TRAVELERS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and TRAVELERS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First Ship Lease and TRAVELERS INC 535 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 535 and First Ship 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 First Ship Lease are associated (or correlated) with TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 535 has no effect on the direction of First Ship i.e., First Ship and TRAVELERS go up and down completely randomly.
Pair Corralation between First Ship and TRAVELERS
Assuming the 90 days horizon First Ship is expected to generate 93.3 times less return on investment than TRAVELERS. But when comparing it to its historical volatility, First Ship Lease is 41.65 times less risky than TRAVELERS. It trades about 0.04 of its potential returns per unit of risk. TRAVELERS INC 535 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,475 in TRAVELERS INC 535 on September 5, 2024 and sell it today you would lose (801.00) from holding TRAVELERS INC 535 or give up 7.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 64.24% |
| Values | Daily Returns |
First Ship Lease vs. TRAVELERS INC 535
Performance |
| Timeline |
| First Ship Lease |
| TRAVELERS INC 535 |
First Ship and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First Ship and TRAVELERS
The main advantage of trading using opposite First Ship and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Ship position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| First Ship vs. Torm PLC Class | First Ship vs. Sun Country Airlines | First Ship vs. Stepan Company | First Ship vs. Pinterest |
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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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