Correlation Between Travelers Companies and Invesco BulletShares
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Invesco BulletShares 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 Invesco BulletShares 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 Invesco BulletShares 2028, you can compare the effects of market volatilities on Travelers Companies and Invesco BulletShares 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 Invesco BulletShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Invesco BulletShares.
Diversification Opportunities for Travelers Companies and Invesco BulletShares
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Invesco is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Invesco BulletShares 2028 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco BulletShares 2028 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 Invesco BulletShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco BulletShares 2028 has no effect on the direction of Travelers Companies i.e., Travelers Companies and Invesco BulletShares go up and down completely randomly.
Pair Corralation between Travelers Companies and Invesco BulletShares
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.57 times more return on investment than Invesco BulletShares. However, Travelers Companies is 4.57 times more volatile than Invesco BulletShares 2028. It trades about 0.06 of its potential returns per unit of risk. Invesco BulletShares 2028 is currently generating about 0.07 per unit of risk. If you would invest 17,899 in The Travelers Companies on August 30, 2024 and sell it today you would earn a total of 8,767 from holding The Travelers Companies or generate 48.98% 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. Invesco BulletShares 2028
Performance |
| Timeline |
| The Travelers Companies |
| Invesco BulletShares 2028 |
Travelers Companies and Invesco BulletShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Invesco BulletShares
The main advantage of trading using opposite Travelers Companies and Invesco BulletShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Invesco BulletShares 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 Invesco BulletShares will offset losses from the drop in Invesco BulletShares' long position.| Travelers Companies vs. Argo Group International | Travelers Companies vs. Donegal Group A | Travelers Companies vs. Selective Insurance Group |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |