Correlation Between Travelers Companies and Newhydrogen
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Newhydrogen 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 Newhydrogen 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 Newhydrogen, you can compare the effects of market volatilities on Travelers Companies and Newhydrogen 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 Newhydrogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Newhydrogen.
Diversification Opportunities for Travelers Companies and Newhydrogen
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Newhydrogen is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Newhydrogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newhydrogen 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 Newhydrogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newhydrogen has no effect on the direction of Travelers Companies i.e., Travelers Companies and Newhydrogen go up and down completely randomly.
Pair Corralation between Travelers Companies and Newhydrogen
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.1 times more return on investment than Newhydrogen. However, The Travelers Companies is 10.0 times less risky than Newhydrogen. It trades about 0.32 of its potential returns per unit of risk. Newhydrogen is currently generating about -0.06 per unit of risk. If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Newhydrogen
Performance |
| Timeline |
| The Travelers Companies |
| Newhydrogen |
Travelers Companies and Newhydrogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Newhydrogen
The main advantage of trading using opposite Travelers Companies and Newhydrogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Newhydrogen 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 Newhydrogen will offset losses from the drop in Newhydrogen's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
| Newhydrogen vs. Solar Integrated Roofing | Newhydrogen vs. Ascent Solar Technologies, | Newhydrogen vs. SinglePoint | Newhydrogen vs. SunHydrogen |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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