Correlation Between Travelers Companies and Angel Oak
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Angel Oak 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 Angel Oak 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 Angel Oak Core, you can compare the effects of market volatilities on Travelers Companies and Angel Oak 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 Angel Oak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Angel Oak.
Diversification Opportunities for Travelers Companies and Angel Oak
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Angel is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Angel Oak Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Angel Oak Core 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 Angel Oak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Angel Oak Core has no effect on the direction of Travelers Companies i.e., Travelers Companies and Angel Oak go up and down completely randomly.
Pair Corralation between Travelers Companies and Angel Oak
If you would invest 23,684 in The Travelers Companies on September 13, 2024 and sell it today you would earn a total of 830.00 from holding The Travelers Companies or generate 3.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 1.59% |
| Values | Daily Returns |
The Travelers Companies vs. Angel Oak Core
Performance |
| Timeline |
| The Travelers Companies |
| Angel Oak Core |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Angel Oak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Angel Oak
The main advantage of trading using opposite Travelers Companies and Angel Oak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Angel Oak 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 Angel Oak will offset losses from the drop in Angel Oak's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| Angel Oak vs. Fidelity Advisor Health | Angel Oak vs. Alphacentric Lifesci Healthcare | Angel Oak vs. The Gabelli Healthcare | Angel Oak vs. Baron Health Care |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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