Correlation Between Travelers Companies and Altitude Acquisition
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Altitude Acquisition at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Travelers Companies and Altitude Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Travelers Companies and Altitude Acquisition Corp, you can compare the effects of market volatilities on Travelers Companies and Altitude Acquisition 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 Travelers Companies with a short position of Altitude Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Altitude Acquisition.
Diversification Opportunities for Travelers Companies and Altitude Acquisition
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Altitude is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Altitude Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altitude Acquisition Corp and Travelers Companies 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 The Travelers Companies are associated (or correlated) with Altitude Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altitude Acquisition Corp has no effect on the direction of Travelers Companies i.e., Travelers Companies and Altitude Acquisition go up and down completely randomly.
Pair Corralation between Travelers Companies and Altitude Acquisition
Considering the 90-day investment horizon The Travelers Companies is expected to generate 6.24 times more return on investment than Altitude Acquisition. However, Travelers Companies is 6.24 times more volatile than Altitude Acquisition Corp. It trades about 0.1 of its potential returns per unit of risk. Altitude Acquisition Corp is currently generating about -0.04 per unit of risk. If you would invest 17,049 in The Travelers Companies on August 31, 2024 and sell it today you would earn a total of 9,555 from holding The Travelers Companies or generate 56.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 8.56% |
| Values | Daily Returns |
The Travelers Companies vs. Altitude Acquisition Corp
Performance |
| Timeline |
| The Travelers Companies |
| Altitude Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Altitude Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Altitude Acquisition
The main advantage of trading using opposite Travelers Companies and Altitude Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Altitude Acquisition 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 Altitude Acquisition will offset losses from the drop in Altitude Acquisition's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. CNA Financial |
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.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |