Correlation Between Travelers Companies and Mairs Power
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Mairs Power 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 Mairs Power 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 Mairs Power Minnesota, you can compare the effects of market volatilities on Travelers Companies and Mairs Power 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 Mairs Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Mairs Power.
Diversification Opportunities for Travelers Companies and Mairs Power
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Mairs is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Mairs Power Minnesota in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mairs Power Minnesota 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 Mairs Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mairs Power Minnesota has no effect on the direction of Travelers Companies i.e., Travelers Companies and Mairs Power go up and down completely randomly.
Pair Corralation between Travelers Companies and Mairs Power
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.56 times more return on investment than Mairs Power. However, Travelers Companies is 4.56 times more volatile than Mairs Power Minnesota. It trades about 0.06 of its potential returns per unit of risk. Mairs Power Minnesota is currently generating about 0.04 per unit of risk. If you would invest 18,034 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 8,570 from holding The Travelers Companies or generate 47.52% 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. Mairs Power Minnesota
Performance |
| Timeline |
| The Travelers Companies |
| Mairs Power Minnesota |
Travelers Companies and Mairs Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Mairs Power
The main advantage of trading using opposite Travelers Companies and Mairs Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Mairs Power 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 Mairs Power will offset losses from the drop in Mairs Power's long position.| Travelers Companies vs. Chubb | Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet |
| Mairs Power vs. BlackRock Intermediate Muni | Mairs Power vs. IQ MacKay Municipal | Mairs Power vs. Overlay Shares Municipal | Mairs Power vs. IQ MacKay Municipal |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |