Correlation Between Travelers Companies and BICO Group
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and BICO Group 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 BICO Group 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 BICO Group AB, you can compare the effects of market volatilities on Travelers Companies and BICO Group 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 BICO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and BICO Group.
Diversification Opportunities for Travelers Companies and BICO Group
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and BICO is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB 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 BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Travelers Companies i.e., Travelers Companies and BICO Group go up and down completely randomly.
Pair Corralation between Travelers Companies and BICO Group
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.63 times more return on investment than BICO Group. However, The Travelers Companies is 1.58 times less risky than BICO Group. It trades about 0.13 of its potential returns per unit of risk. BICO Group AB is currently generating about -0.02 per unit of risk. If you would invest 20,839 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 5,765 from holding The Travelers Companies or generate 27.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
The Travelers Companies vs. BICO Group AB
Performance |
| Timeline |
| The Travelers Companies |
| BICO Group AB |
Travelers Companies and BICO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and BICO Group
The main advantage of trading using opposite Travelers Companies and BICO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, BICO Group 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 BICO Group will offset losses from the drop in BICO Group'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 |
| BICO Group vs. Anteris Technologies | BICO Group vs. Brain Scientific | BICO Group vs. Aurora Spine | BICO Group vs. Tenon Medical |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |