Correlation Between Travelers Companies and IShares IBonds
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and IShares IBonds 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 IBonds 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 iBonds Dec, you can compare the effects of market volatilities on Travelers Companies and IShares IBonds 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 IBonds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and IShares IBonds.
Diversification Opportunities for Travelers Companies and IShares IBonds
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Travelers and IShares is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and iShares iBonds Dec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares iBonds Dec 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 IBonds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares iBonds Dec has no effect on the direction of Travelers Companies i.e., Travelers Companies and IShares IBonds go up and down completely randomly.
Pair Corralation between Travelers Companies and IShares IBonds
Considering the 90-day investment horizon The Travelers Companies is expected to generate 57.28 times more return on investment than IShares IBonds. However, Travelers Companies is 57.28 times more volatile than iShares iBonds Dec. It trades about 0.13 of its potential returns per unit of risk. iShares iBonds Dec is currently generating about 0.55 per unit of risk. If you would invest 23,632 in The Travelers Companies on August 26, 2024 and sell it today you would earn a total of 2,615 from holding The Travelers Companies or generate 11.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. iShares iBonds Dec
Performance |
| Timeline |
| The Travelers Companies |
| iShares iBonds Dec |
Travelers Companies and IShares IBonds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and IShares IBonds
The main advantage of trading using opposite Travelers Companies and IShares IBonds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, IShares IBonds 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 IBonds will offset losses from the drop in IShares IBonds' long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec | IShares IBonds vs. iShares iBonds Dec |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Managers Screen money managers from public funds and ETFs managed around the world |