Correlation Between Travelers Companies and Berenson Acquisition
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Berenson 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 Berenson 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 Berenson Acquisition Corp, you can compare the effects of market volatilities on Travelers Companies and Berenson 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 Berenson Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Berenson Acquisition.
Diversification Opportunities for Travelers Companies and Berenson Acquisition
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Berenson is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Berenson Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berenson 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 Berenson Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berenson Acquisition Corp has no effect on the direction of Travelers Companies i.e., Travelers Companies and Berenson Acquisition go up and down completely randomly.
Pair Corralation between Travelers Companies and Berenson Acquisition
If you would invest 24,867 in The Travelers Companies on August 30, 2024 and sell it today you would earn a total of 1,799 from holding The Travelers Companies or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
The Travelers Companies vs. Berenson Acquisition Corp
Performance |
| Timeline |
| The Travelers Companies |
| Berenson Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Travelers Companies and Berenson Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Berenson Acquisition
The main advantage of trading using opposite Travelers Companies and Berenson Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Berenson 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 Berenson Acquisition will offset losses from the drop in Berenson Acquisition's long position.| Travelers Companies vs. Axa Equitable Holdings | Travelers Companies vs. American International Group | Travelers Companies vs. Arch Capital Group | Travelers Companies vs. Sun Life 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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