Correlation Between Travelers Companies and Voya Intermediate
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Voya Intermediate 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 Voya Intermediate 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 Voya Intermediate Bond, you can compare the effects of market volatilities on Travelers Companies and Voya Intermediate 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 Voya Intermediate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Voya Intermediate.
Diversification Opportunities for Travelers Companies and Voya Intermediate
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Voya is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Voya Intermediate Bond in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Voya Intermediate Bond 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 Voya Intermediate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Voya Intermediate Bond has no effect on the direction of Travelers Companies i.e., Travelers Companies and Voya Intermediate go up and down completely randomly.
Pair Corralation between Travelers Companies and Voya Intermediate
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the Voya Intermediate. In addition to that, Travelers Companies is 4.36 times more volatile than Voya Intermediate Bond. It trades about -0.04 of its total potential returns per unit of risk. Voya Intermediate Bond is currently generating about 0.18 per unit of volatility. If you would invest 862.00 in Voya Intermediate Bond on November 27, 2024 and sell it today you would earn a total of 9.00 from holding Voya Intermediate Bond or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Travelers Companies vs. Voya Intermediate Bond
Performance |
| Timeline |
| The Travelers Companies |
| Voya Intermediate Bond |
Travelers Companies and Voya Intermediate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Voya Intermediate
The main advantage of trading using opposite Travelers Companies and Voya Intermediate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Voya Intermediate 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 Voya Intermediate will offset losses from the drop in Voya Intermediate's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| Voya Intermediate vs. Salient Mlp Energy | Voya Intermediate vs. World Energy Fund | Voya Intermediate vs. Gamco Natural Resources | Voya Intermediate vs. Transamerica Mlp Energy |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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