Correlation Between Travelers Companies and IShares
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and IShares 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 IShares 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 IShares, you can compare the effects of market volatilities on Travelers Companies and IShares 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 IShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and IShares.
Diversification Opportunities for Travelers Companies and IShares
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and IShares is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and IShares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares 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 IShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares has no effect on the direction of Travelers Companies i.e., Travelers Companies and IShares go up and down completely randomly.
Pair Corralation between Travelers Companies and IShares
If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
The Travelers Companies vs. IShares
Performance |
| Timeline |
| The Travelers Companies |
| IShares |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and IShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and IShares
The main advantage of trading using opposite Travelers Companies and IShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, IShares 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 IShares will offset losses from the drop in IShares' 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 |
| IShares vs. iShares Currency Hedged | IShares vs. iShares MSCI United | IShares vs. iShares Currency Hedged | IShares vs. iShares Currency Hedged |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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