Correlation Between Travelers Companies and Eagle Mid
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Eagle Mid 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 Eagle Mid 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 Eagle Mid Cap, you can compare the effects of market volatilities on Travelers Companies and Eagle Mid 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 Eagle Mid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Eagle Mid.
Diversification Opportunities for Travelers Companies and Eagle Mid
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Travelers and Eagle is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Eagle Mid Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eagle Mid Cap 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 Eagle Mid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eagle Mid Cap has no effect on the direction of Travelers Companies i.e., Travelers Companies and Eagle Mid go up and down completely randomly.
Pair Corralation between Travelers Companies and Eagle Mid
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 Together |
| Strength | Strong |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Travelers Companies vs. Eagle Mid Cap
Performance |
| Timeline |
| The Travelers Companies |
| Eagle Mid Cap |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Eagle Mid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Eagle Mid
The main advantage of trading using opposite Travelers Companies and Eagle Mid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Eagle Mid 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 Eagle Mid will offset losses from the drop in Eagle Mid's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| Eagle Mid vs. Dunham Large Cap | Eagle Mid vs. Avantis Large Cap | Eagle Mid vs. Vanguard Windsor Fund | Eagle Mid vs. Qs Large Cap |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |