Correlation Between Travelers Companies and Unusual Whales
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Unusual Whales 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 Unusual Whales 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 Unusual Whales Subversive, you can compare the effects of market volatilities on Travelers Companies and Unusual Whales 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 Unusual Whales. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Unusual Whales.
Diversification Opportunities for Travelers Companies and Unusual Whales
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Unusual is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Unusual Whales Subversive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unusual Whales Subversive 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 Unusual Whales. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unusual Whales Subversive has no effect on the direction of Travelers Companies i.e., Travelers Companies and Unusual Whales go up and down completely randomly.
Pair Corralation between Travelers Companies and Unusual Whales
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.71 times more return on investment than Unusual Whales. However, Travelers Companies is 1.71 times more volatile than Unusual Whales Subversive. It trades about 0.06 of its potential returns per unit of risk. Unusual Whales Subversive is currently generating about 0.08 per unit of risk. If you would invest 17,786 in The Travelers Companies on November 9, 2024 and sell it today you would earn a total of 6,978 from holding The Travelers Companies or generate 39.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Unusual Whales Subversive
Performance |
| Timeline |
| The Travelers Companies |
| Unusual Whales Subversive |
Travelers Companies and Unusual Whales Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Unusual Whales
The main advantage of trading using opposite Travelers Companies and Unusual Whales positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Unusual Whales 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 Unusual Whales will offset losses from the drop in Unusual Whales' long position.| Travelers Companies vs. Great Western Minerals | Travelers Companies vs. Enterprise Bancorp | Travelers Companies vs. T Rowe Price | Travelers Companies vs. Aviat Networks |
| Unusual Whales vs. Unusual Whales Subversive | Unusual Whales vs. AXS 2X Innovation | Unusual Whales vs. FLEX LNG |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |