Correlation Between Travelers Companies and Guangzhou Baiyunshan
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Guangzhou Baiyunshan 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 Guangzhou Baiyunshan 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 Guangzhou Baiyunshan Pharmaceutical, you can compare the effects of market volatilities on Travelers Companies and Guangzhou Baiyunshan 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 Guangzhou Baiyunshan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Guangzhou Baiyunshan.
Diversification Opportunities for Travelers Companies and Guangzhou Baiyunshan
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Guangzhou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Guangzhou Baiyunshan Pharmaceu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Baiyunshan 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 Guangzhou Baiyunshan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Baiyunshan has no effect on the direction of Travelers Companies i.e., Travelers Companies and Guangzhou Baiyunshan go up and down completely randomly.
Pair Corralation between Travelers Companies and Guangzhou Baiyunshan
If you would invest 20,770 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 5,834 from holding The Travelers Companies or generate 28.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 0.79% |
| Values | Daily Returns |
The Travelers Companies vs. Guangzhou Baiyunshan Pharmaceu
Performance |
| Timeline |
| The Travelers Companies |
| Guangzhou Baiyunshan |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Guangzhou Baiyunshan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Guangzhou Baiyunshan
The main advantage of trading using opposite Travelers Companies and Guangzhou Baiyunshan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Guangzhou Baiyunshan 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 Guangzhou Baiyunshan will offset losses from the drop in Guangzhou Baiyunshan's 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 |
| Guangzhou Baiyunshan vs. Catalent | Guangzhou Baiyunshan vs. Zoetis Inc | Guangzhou Baiyunshan vs. ANI Pharmaceuticals | Guangzhou Baiyunshan vs. CV Sciences |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |