Correlation Between ArcelorMittal and TRAVELERS
Specify exactly 2 symbols:
By analyzing existing cross correlation between ArcelorMittal SA ADR and TRAVELERS INC 535, you can compare the effects of market volatilities on ArcelorMittal 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 ArcelorMittal with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ArcelorMittal and TRAVELERS.
Diversification Opportunities for ArcelorMittal and TRAVELERS
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ArcelorMittal and TRAVELERS is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding ArcelorMittal SA ADR 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 ArcelorMittal 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 ArcelorMittal SA ADR 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 ArcelorMittal i.e., ArcelorMittal and TRAVELERS go up and down completely randomly.
Pair Corralation between ArcelorMittal and TRAVELERS
Allowing for the 90-day total investment horizon ArcelorMittal SA ADR is expected to generate 1.13 times more return on investment than TRAVELERS. However, ArcelorMittal is 1.13 times more volatile than TRAVELERS INC 535. It trades about 0.07 of its potential returns per unit of risk. TRAVELERS INC 535 is currently generating about -0.12 per unit of risk. If you would invest 2,457 in ArcelorMittal SA ADR on September 5, 2024 and sell it today you would earn a total of 67.00 from holding ArcelorMittal SA ADR or generate 2.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
ArcelorMittal SA ADR vs. TRAVELERS INC 535
Performance |
| Timeline |
| ArcelorMittal SA ADR |
| TRAVELERS INC 535 |
ArcelorMittal and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ArcelorMittal and TRAVELERS
The main advantage of trading using opposite ArcelorMittal and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ArcelorMittal 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.| ArcelorMittal vs. Constellium Nv | ArcelorMittal vs. Century Aluminum | ArcelorMittal vs. China Hongqiao Group | ArcelorMittal vs. Kaiser Aluminum |
| TRAVELERS vs. Global Ship Lease | TRAVELERS vs. Lifevantage | TRAVELERS vs. First Ship Lease | TRAVELERS vs. Herc Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |