Correlation Between Travelers Companies and Hypera SA
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Hypera SA 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 Hypera SA 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 Hypera SA, you can compare the effects of market volatilities on Travelers Companies and Hypera SA 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 Hypera SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Hypera SA.
Diversification Opportunities for Travelers Companies and Hypera SA
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Hypera is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Hypera SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hypera SA 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 Hypera SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hypera SA has no effect on the direction of Travelers Companies i.e., Travelers Companies and Hypera SA go up and down completely randomly.
Pair Corralation between Travelers Companies and Hypera SA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.58 times more return on investment than Hypera SA. However, The Travelers Companies is 1.72 times less risky than Hypera SA. It trades about 0.06 of its potential returns per unit of risk. Hypera SA is currently generating about -0.06 per unit of risk. If you would invest 17,960 in The Travelers Companies on August 26, 2024 and sell it today you would earn a total of 8,287 from holding The Travelers Companies or generate 46.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Hypera SA
Performance |
| Timeline |
| The Travelers Companies |
| Hypera SA |
Travelers Companies and Hypera SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Hypera SA
The main advantage of trading using opposite Travelers Companies and Hypera SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Hypera SA 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 Hypera SA will offset losses from the drop in Hypera SA's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Hypera SA vs. Benchmark Botanics | Hypera SA vs. Speakeasy Cannabis Club | Hypera SA vs. City View Green | Hypera SA vs. BC Craft Supply |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |