Correlation Between Travelers Companies and Citius Pharmaceuticals
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Citius Pharmaceuticals 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 Citius Pharmaceuticals 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 Citius Pharmaceuticals, you can compare the effects of market volatilities on Travelers Companies and Citius Pharmaceuticals 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 Citius Pharmaceuticals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Citius Pharmaceuticals.
Diversification Opportunities for Travelers Companies and Citius Pharmaceuticals
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Citius is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Citius Pharmaceuticals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citius Pharmaceuticals 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 Citius Pharmaceuticals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citius Pharmaceuticals has no effect on the direction of Travelers Companies i.e., Travelers Companies and Citius Pharmaceuticals go up and down completely randomly.
Pair Corralation between Travelers Companies and Citius Pharmaceuticals
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.25 times more return on investment than Citius Pharmaceuticals. However, The Travelers Companies is 3.98 times less risky than Citius Pharmaceuticals. It trades about 0.06 of its potential returns per unit of risk. Citius Pharmaceuticals is currently generating about -0.05 per unit of risk. If you would invest 18,040 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 8,564 from holding The Travelers Companies or generate 47.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Citius Pharmaceuticals
Performance |
| Timeline |
| The Travelers Companies |
| Citius Pharmaceuticals |
Travelers Companies and Citius Pharmaceuticals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Citius Pharmaceuticals
The main advantage of trading using opposite Travelers Companies and Citius Pharmaceuticals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Citius Pharmaceuticals 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 Citius Pharmaceuticals will offset losses from the drop in Citius Pharmaceuticals' 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 |
| Citius Pharmaceuticals vs. X4 Pharmaceuticals | Citius Pharmaceuticals vs. Hookipa Pharma | Citius Pharmaceuticals vs. Mereo BioPharma Group | Citius Pharmaceuticals vs. Acumen Pharmaceuticals |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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