Correlation Between Travelers Companies and Barclays Capital
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Barclays Capital 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 Barclays Capital 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 Barclays Capital, you can compare the effects of market volatilities on Travelers Companies and Barclays Capital 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 Barclays Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Barclays Capital.
Diversification Opportunities for Travelers Companies and Barclays Capital
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Barclays is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Barclays Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays Capital 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 Barclays Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays Capital has no effect on the direction of Travelers Companies i.e., Travelers Companies and Barclays Capital go up and down completely randomly.
Pair Corralation between Travelers Companies and Barclays Capital
If you would invest 20,842 in The Travelers Companies on August 25, 2024 and sell it today you would earn a total of 5,405 from holding The Travelers Companies or generate 25.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 0.79% |
| Values | Daily Returns |
The Travelers Companies vs. Barclays Capital
Performance |
| Timeline |
| The Travelers Companies |
| Barclays Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Barclays Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Barclays Capital
The main advantage of trading using opposite Travelers Companies and Barclays Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Barclays Capital 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 Barclays Capital will offset losses from the drop in Barclays Capital's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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