Correlation Between Travelers Companies and Konami Holdings
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Konami Holdings 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 Konami Holdings 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 Konami Holdings, you can compare the effects of market volatilities on Travelers Companies and Konami Holdings 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 Konami Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Konami Holdings.
Diversification Opportunities for Travelers Companies and Konami Holdings
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Konami is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Konami Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konami Holdings 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 Konami Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konami Holdings has no effect on the direction of Travelers Companies i.e., Travelers Companies and Konami Holdings go up and down completely randomly.
Pair Corralation between Travelers Companies and Konami Holdings
If you would invest 21,052 in The Travelers Companies on August 28, 2024 and sell it today you would earn a total of 5,070 from holding The Travelers Companies or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.79% |
| Values | Daily Returns |
The Travelers Companies vs. Konami Holdings
Performance |
| Timeline |
| The Travelers Companies |
| Konami Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Konami Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Konami Holdings
The main advantage of trading using opposite Travelers Companies and Konami Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Konami Holdings 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 Konami Holdings will offset losses from the drop in Konami Holdings' long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Konami Holdings vs. Tenaris SA ADR | Konami Holdings vs. Bank of America | Konami Holdings vs. PennantPark Investment | Konami Holdings vs. Aegon NV ADR |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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