Correlation Between Travelers Companies and Cellebrite
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Cellebrite 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 Cellebrite 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 Cellebrite DI Equity, you can compare the effects of market volatilities on Travelers Companies and Cellebrite 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 Cellebrite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Cellebrite.
Diversification Opportunities for Travelers Companies and Cellebrite
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Cellebrite is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Cellebrite DI Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellebrite DI Equity 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 Cellebrite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellebrite DI Equity has no effect on the direction of Travelers Companies i.e., Travelers Companies and Cellebrite go up and down completely randomly.
Pair Corralation between Travelers Companies and Cellebrite
If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Travelers Companies vs. Cellebrite DI Equity
Performance |
| Timeline |
| The Travelers Companies |
| Cellebrite DI Equity |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Cellebrite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Cellebrite
The main advantage of trading using opposite Travelers Companies and Cellebrite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Cellebrite 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 Cellebrite will offset losses from the drop in Cellebrite'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 |
| Cellebrite vs. Ryman Hospitality Properties | Cellebrite vs. Bt Brands | Cellebrite vs. Simpson Manufacturing | Cellebrite vs. Dave Busters Entertainment |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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