Correlation Between Travelers Companies and Bullpen Parlay
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Bullpen Parlay 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 Bullpen Parlay 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 Bullpen Parlay Acquisition, you can compare the effects of market volatilities on Travelers Companies and Bullpen Parlay 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 Bullpen Parlay. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Bullpen Parlay.
Diversification Opportunities for Travelers Companies and Bullpen Parlay
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Bullpen is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Bullpen Parlay Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bullpen Parlay Acqui 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 Bullpen Parlay. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bullpen Parlay Acqui has no effect on the direction of Travelers Companies i.e., Travelers Companies and Bullpen Parlay go up and down completely randomly.
Pair Corralation between Travelers Companies and Bullpen Parlay
If you would invest 21,067 in The Travelers Companies on November 5, 2024 and sell it today you would earn a total of 3,393 from holding The Travelers Companies or generate 16.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.41% |
| Values | Daily Returns |
The Travelers Companies vs. Bullpen Parlay Acquisition
Performance |
| Timeline |
| The Travelers Companies |
| Bullpen Parlay Acqui |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Bullpen Parlay Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Bullpen Parlay
The main advantage of trading using opposite Travelers Companies and Bullpen Parlay positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Bullpen Parlay 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 Bullpen Parlay will offset losses from the drop in Bullpen Parlay's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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