Correlation Between Travelers Companies and Glacier Media
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Glacier Media 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 Glacier Media 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 Glacier Media, you can compare the effects of market volatilities on Travelers Companies and Glacier Media 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 Glacier Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Glacier Media.
Diversification Opportunities for Travelers Companies and Glacier Media
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Glacier is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Glacier Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Glacier Media 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 Glacier Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Glacier Media has no effect on the direction of Travelers Companies i.e., Travelers Companies and Glacier Media go up and down completely randomly.
Pair Corralation between Travelers Companies and Glacier Media
Considering the 90-day investment horizon Travelers Companies is expected to generate 11.39 times less return on investment than Glacier Media. But when comparing it to its historical volatility, The Travelers Companies is 6.98 times less risky than Glacier Media. It trades about 0.13 of its potential returns per unit of risk. Glacier Media is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Glacier Media on August 28, 2024 and sell it today you would earn a total of 3.50 from holding Glacier Media or generate 41.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Glacier Media
Performance |
| Timeline |
| The Travelers Companies |
| Glacier Media |
Travelers Companies and Glacier Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Glacier Media
The main advantage of trading using opposite Travelers Companies and Glacier Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Glacier Media 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 Glacier Media will offset losses from the drop in Glacier Media's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Glacier Media vs. HUMANA INC | Glacier Media vs. SCOR PK | Glacier Media vs. Aquagold International | Glacier Media vs. Barloworld Ltd ADR |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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