Correlation Between Travelers Companies and Fujitsu
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Fujitsu 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 Fujitsu 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 Fujitsu Ltd ADR, you can compare the effects of market volatilities on Travelers Companies and Fujitsu 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 Fujitsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Fujitsu.
Diversification Opportunities for Travelers Companies and Fujitsu
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Fujitsu is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Fujitsu Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujitsu Ltd ADR 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 Fujitsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujitsu Ltd ADR has no effect on the direction of Travelers Companies i.e., Travelers Companies and Fujitsu go up and down completely randomly.
Pair Corralation between Travelers Companies and Fujitsu
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.61 times more return on investment than Fujitsu. However, The Travelers Companies is 1.65 times less risky than Fujitsu. It trades about 0.34 of its potential returns per unit of risk. Fujitsu Ltd ADR is currently generating about 0.18 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 2,070 from holding The Travelers Companies or generate 8.53% 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. Fujitsu Ltd ADR
Performance |
| Timeline |
| The Travelers Companies |
| Fujitsu Ltd ADR |
Travelers Companies and Fujitsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Fujitsu
The main advantage of trading using opposite Travelers Companies and Fujitsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Fujitsu 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 Fujitsu will offset losses from the drop in Fujitsu's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| Fujitsu vs. Eline Entertainment Group | Fujitsu vs. Green Leaf Innovations | Fujitsu vs. Plandai Biotech | Fujitsu vs. All American Gld |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |