Correlation Between Travelers Companies and IShares JP
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and IShares JP 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 IShares JP 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 iShares JP Morgan, you can compare the effects of market volatilities on Travelers Companies and IShares JP 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 IShares JP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and IShares JP.
Diversification Opportunities for Travelers Companies and IShares JP
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and IShares is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and iShares JP Morgan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares JP Morgan 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 IShares JP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares JP Morgan has no effect on the direction of Travelers Companies i.e., Travelers Companies and IShares JP go up and down completely randomly.
Pair Corralation between Travelers Companies and IShares JP
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.99 times more return on investment than IShares JP. However, Travelers Companies is 2.99 times more volatile than iShares JP Morgan. It trades about 0.06 of its potential returns per unit of risk. iShares JP Morgan is currently generating about 0.03 per unit of risk. If you would invest 18,184 in The Travelers Companies on August 23, 2024 and sell it today you would earn a total of 7,897 from holding The Travelers Companies or generate 43.43% 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. iShares JP Morgan
Performance |
| Timeline |
| The Travelers Companies |
| iShares JP Morgan |
Travelers Companies and IShares JP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and IShares JP
The main advantage of trading using opposite Travelers Companies and IShares JP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, IShares JP 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 IShares JP will offset losses from the drop in IShares JP's long position.| Travelers Companies vs. Small Cap Core | Travelers Companies vs. FitLife Brands, Common | Travelers Companies vs. Mutual Of America | Travelers Companies vs. Gfl Environmental Holdings |
| IShares JP vs. Schwab Fundamental International | IShares JP vs. Xtrackers International Real | IShares JP vs. Schwab Fundamental Small | IShares JP vs. Schwab Fundamental Emerging |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |