Correlation Between Grupo Carso and Travelers Companies
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By analyzing existing cross correlation between Grupo Carso SAB and The Travelers Companies, you can compare the effects of market volatilities on Grupo Carso and Travelers Companies 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 Grupo Carso with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grupo Carso and Travelers Companies.
Diversification Opportunities for Grupo Carso and Travelers Companies
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grupo and Travelers is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Grupo Carso SAB and The Travelers Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Travelers Companies and Grupo Carso 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 Grupo Carso SAB are associated (or correlated) with Travelers Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Travelers Companies has no effect on the direction of Grupo Carso i.e., Grupo Carso and Travelers Companies go up and down completely randomly.
Pair Corralation between Grupo Carso and Travelers Companies
Assuming the 90 days trading horizon Grupo Carso is expected to generate 1.43 times less return on investment than Travelers Companies. In addition to that, Grupo Carso is 1.13 times more volatile than The Travelers Companies. It trades about 0.03 of its total potential returns per unit of risk. The Travelers Companies is currently generating about 0.05 per unit of volatility. If you would invest 322,698 in The Travelers Companies on October 29, 2024 and sell it today you would earn a total of 175,302 from holding The Travelers Companies or generate 54.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grupo Carso SAB vs. The Travelers Companies
Performance |
| Timeline |
| Grupo Carso SAB |
| The Travelers Companies |
Grupo Carso and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grupo Carso and Travelers Companies
The main advantage of trading using opposite Grupo Carso and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grupo Carso position performs unexpectedly, Travelers Companies 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 Companies will offset losses from the drop in Travelers Companies' long position.| Grupo Carso vs. Grupo Financiero Inbursa | Grupo Carso vs. Alfa SAB de | Grupo Carso vs. Kimberly Clark de Mxico | Grupo Carso vs. Grupo Televisa SAB |
| Travelers Companies vs. Netflix | Travelers Companies vs. Delta Air Lines | Travelers Companies vs. Southwest Airlines | Travelers Companies vs. Vista Oil Gas |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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