Correlation Between Travelers Companies and Aslan Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals 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 Aslan Pharmaceuticals, you can compare the effects of market volatilities on Travelers Companies and Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Aslan Pharmaceuticals.
Diversification Opportunities for Travelers Companies and Aslan Pharmaceuticals
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Aslan is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Aslan Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aslan Pharmaceuticals 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 Aslan Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aslan Pharmaceuticals has no effect on the direction of Travelers Companies i.e., Travelers Companies and Aslan Pharmaceuticals go up and down completely randomly.
Pair Corralation between Travelers Companies and Aslan Pharmaceuticals
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.12 times more return on investment than Aslan Pharmaceuticals. However, The Travelers Companies is 8.34 times less risky than Aslan Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Aslan Pharmaceuticals is currently generating about -0.03 per unit of risk. If you would invest 18,099 in The Travelers Companies on August 29, 2024 and sell it today you would earn a total of 8,278 from holding The Travelers Companies or generate 45.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 81.45% |
| Values | Daily Returns |
The Travelers Companies vs. Aslan Pharmaceuticals
Performance |
| Timeline |
| The Travelers Companies |
| Aslan Pharmaceuticals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Aslan Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Aslan Pharmaceuticals
The main advantage of trading using opposite Travelers Companies and Aslan Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Aslan Pharmaceuticals 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 Aslan Pharmaceuticals will offset losses from the drop in Aslan Pharmaceuticals' long position.| Travelers Companies vs. Global Indemnity PLC | Travelers Companies vs. Argo Group International | Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. NI Holdings |
| Aslan Pharmaceuticals vs. Monte Rosa Therapeutics | Aslan Pharmaceuticals vs. NewAmsterdam Pharma | Aslan Pharmaceuticals vs. Inventiva Sa | Aslan Pharmaceuticals vs. Cullinan Oncology LLC |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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