Correlation Between Sensient Technologies and TRAVELERS
Specify exactly 2 symbols:
By analyzing existing cross correlation between Sensient Technologies and TRAVELERS PANIES INC, you can compare the effects of market volatilities on Sensient Technologies 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 Sensient Technologies with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sensient Technologies and TRAVELERS.
Diversification Opportunities for Sensient Technologies and TRAVELERS
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sensient and TRAVELERS is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Sensient Technologies and TRAVELERS PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS PANIES INC and Sensient Technologies 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 Sensient Technologies 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 PANIES INC has no effect on the direction of Sensient Technologies i.e., Sensient Technologies and TRAVELERS go up and down completely randomly.
Pair Corralation between Sensient Technologies and TRAVELERS
Considering the 90-day investment horizon Sensient Technologies is expected to under-perform the TRAVELERS. But the stock apears to be less risky and, when comparing its historical volatility, Sensient Technologies is 1.54 times less risky than TRAVELERS. The stock trades about -0.04 of its potential returns per unit of risk. The TRAVELERS PANIES INC is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,747 in TRAVELERS PANIES INC on September 15, 2024 and sell it today you would earn a total of 446.00 from holding TRAVELERS PANIES INC or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
Sensient Technologies vs. TRAVELERS PANIES INC
Performance |
| Timeline |
| Sensient Technologies |
| TRAVELERS PANIES INC |
Sensient Technologies and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sensient Technologies and TRAVELERS
The main advantage of trading using opposite Sensient Technologies and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sensient Technologies 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.| Sensient Technologies vs. Innospec | Sensient Technologies vs. Minerals Technologies | Sensient Technologies vs. Oil Dri | Sensient Technologies vs. H B Fuller |
| TRAVELERS vs. Eastman Chemical | TRAVELERS vs. Ecovyst | TRAVELERS vs. Sensient Technologies | TRAVELERS vs. NL Industries |
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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Global Correlations Find global opportunities by holding instruments from different markets |