Correlation Between Travelers Companies and Bantek
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Bantek 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 Bantek 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 Bantek Inc, you can compare the effects of market volatilities on Travelers Companies and Bantek 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 Bantek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Bantek.
Diversification Opportunities for Travelers Companies and Bantek
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Bantek is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Bantek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bantek Inc 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 Bantek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bantek Inc has no effect on the direction of Travelers Companies i.e., Travelers Companies and Bantek go up and down completely randomly.
Pair Corralation between Travelers Companies and Bantek
Considering the 90-day investment horizon Travelers Companies is expected to generate 12.94 times less return on investment than Bantek. But when comparing it to its historical volatility, The Travelers Companies is 17.51 times less risky than Bantek. It trades about 0.33 of its potential returns per unit of risk. Bantek Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.12 in Bantek Inc on September 2, 2024 and sell it today you would earn a total of 0.11 from holding Bantek Inc or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Bantek Inc
Performance |
| Timeline |
| The Travelers Companies |
| Bantek Inc |
Travelers Companies and Bantek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Bantek
The main advantage of trading using opposite Travelers Companies and Bantek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Bantek 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 Bantek will offset losses from the drop in Bantek's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
| Bantek vs. Firan Technology Group | Bantek vs. 808 Renewable Energy | Bantek vs. Park Electrochemical | Bantek vs. Innovative Solutions and |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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