Correlation Between Travelers Companies and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Natixis ETF 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 Natixis ETF 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 Natixis ETF Trust, you can compare the effects of market volatilities on Travelers Companies and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Natixis ETF.
Diversification Opportunities for Travelers Companies and Natixis ETF
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Natixis is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF Trust 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Travelers Companies i.e., Travelers Companies and Natixis ETF go up and down completely randomly.
Pair Corralation between Travelers Companies and Natixis ETF
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.66 times more return on investment than Natixis ETF. However, Travelers Companies is 1.66 times more volatile than Natixis ETF Trust. It trades about 0.18 of its potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.17 per unit of risk. If you would invest 25,050 in The Travelers Companies on August 26, 2024 and sell it today you would earn a total of 1,197 from holding The Travelers Companies or generate 4.78% 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. Natixis ETF Trust
Performance |
| Timeline |
| The Travelers Companies |
| Natixis ETF Trust |
Travelers Companies and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Natixis ETF
The main advantage of trading using opposite Travelers Companies and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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