Correlation Between Travelers Companies and Jackpot Digital
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Jackpot Digital 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 Jackpot Digital 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 Jackpot Digital, you can compare the effects of market volatilities on Travelers Companies and Jackpot Digital 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 Jackpot Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Jackpot Digital.
Diversification Opportunities for Travelers Companies and Jackpot Digital
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Jackpot is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Jackpot Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jackpot Digital 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 Jackpot Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jackpot Digital has no effect on the direction of Travelers Companies i.e., Travelers Companies and Jackpot Digital go up and down completely randomly.
Pair Corralation between Travelers Companies and Jackpot Digital
Considering the 90-day investment horizon Travelers Companies is expected to generate 3.09 times less return on investment than Jackpot Digital. But when comparing it to its historical volatility, The Travelers Companies is 4.8 times less risky than Jackpot Digital. It trades about 0.06 of its potential returns per unit of risk. Jackpot Digital is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 3.31 in Jackpot Digital on August 25, 2024 and sell it today you would earn a total of 0.94 from holding Jackpot Digital or generate 28.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Jackpot Digital
Performance |
| Timeline |
| The Travelers Companies |
| Jackpot Digital |
Travelers Companies and Jackpot Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Jackpot Digital
The main advantage of trading using opposite Travelers Companies and Jackpot Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Jackpot Digital 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 Jackpot Digital will offset losses from the drop in Jackpot Digital's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Jackpot Digital vs. Intema Solutions | Jackpot Digital vs. 888 Holdings | Jackpot Digital vs. Royal Wins | Jackpot Digital vs. Churchill Downs Incorporated |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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