Correlation Between Travelers Companies and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Fidelity Advantage 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 Fidelity Advantage 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 Fidelity Advantage Ether, you can compare the effects of market volatilities on Travelers Companies and Fidelity Advantage 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 Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Fidelity Advantage.
Diversification Opportunities for Travelers Companies and Fidelity Advantage
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Travelers and Fidelity is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Fidelity Advantage Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage Ether 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 Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage Ether has no effect on the direction of Travelers Companies i.e., Travelers Companies and Fidelity Advantage go up and down completely randomly.
Pair Corralation between Travelers Companies and Fidelity Advantage
Considering the 90-day investment horizon Travelers Companies is expected to generate 4.8 times less return on investment than Fidelity Advantage. But when comparing it to its historical volatility, The Travelers Companies is 4.52 times less risky than Fidelity Advantage. It trades about 0.27 of its potential returns per unit of risk. Fidelity Advantage Ether is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 2,628 in Fidelity Advantage Ether on August 30, 2024 and sell it today you would earn a total of 1,008 from holding Fidelity Advantage Ether or generate 38.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Travelers Companies vs. Fidelity Advantage Ether
Performance |
| Timeline |
| The Travelers Companies |
| Fidelity Advantage Ether |
Travelers Companies and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Fidelity Advantage
The main advantage of trading using opposite Travelers Companies and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Fidelity Advantage 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 Fidelity Advantage will offset losses from the drop in Fidelity Advantage's long position.| Travelers Companies vs. Axa Equitable Holdings | Travelers Companies vs. American International Group | Travelers Companies vs. Arch Capital Group | Travelers Companies vs. Sun Life Financial |
| Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. iShares Ethereum Trust | Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. Grayscale Ethereum Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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