Correlation Between Park Electrochemical and TRAVELERS
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By analyzing existing cross correlation between Park Electrochemical and TRAVELERS INS GROUP, you can compare the effects of market volatilities on Park Electrochemical 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 Park Electrochemical with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park Electrochemical and TRAVELERS.
Diversification Opportunities for Park Electrochemical and TRAVELERS
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Park and TRAVELERS is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Park Electrochemical and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP and Park Electrochemical 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 Park Electrochemical 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 INS GROUP has no effect on the direction of Park Electrochemical i.e., Park Electrochemical and TRAVELERS go up and down completely randomly.
Pair Corralation between Park Electrochemical and TRAVELERS
Considering the 90-day investment horizon Park Electrochemical is expected to generate 1.07 times less return on investment than TRAVELERS. In addition to that, Park Electrochemical is 3.08 times more volatile than TRAVELERS INS GROUP. It trades about 0.05 of its total potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.15 per unit of volatility. If you would invest 10,398 in TRAVELERS INS GROUP on November 3, 2024 and sell it today you would earn a total of 213.00 from holding TRAVELERS INS GROUP or generate 2.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Park Electrochemical vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| Park Electrochemical |
| TRAVELERS INS GROUP |
Park Electrochemical and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park Electrochemical and TRAVELERS
The main advantage of trading using opposite Park Electrochemical and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park Electrochemical 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.| Park Electrochemical vs. Innovative Solutions and | Park Electrochemical vs. VSE Corporation | Park Electrochemical vs. Curtiss Wright | Park Electrochemical vs. Ducommun Incorporated |
| TRAVELERS vs. World Houseware Limited | TRAVELERS vs. Snap On | TRAVELERS vs. Hafnia Limited | TRAVELERS vs. Mesa Air Group |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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