Correlation Between Travelers Companies and Nubia Brand
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Nubia Brand 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 Nubia Brand 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 Nubia Brand International, you can compare the effects of market volatilities on Travelers Companies and Nubia Brand 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 Nubia Brand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Nubia Brand.
Diversification Opportunities for Travelers Companies and Nubia Brand
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Nubia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Nubia Brand International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nubia Brand International 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 Nubia Brand. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nubia Brand International has no effect on the direction of Travelers Companies i.e., Travelers Companies and Nubia Brand go up and down completely randomly.
Pair Corralation between Travelers Companies and Nubia Brand
If you would invest 17,774 in The Travelers Companies on November 19, 2024 and sell it today you would earn a total of 6,056 from holding The Travelers Companies or generate 34.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Travelers Companies vs. Nubia Brand International
Performance |
| Timeline |
| The Travelers Companies |
| Nubia Brand International |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Travelers Companies and Nubia Brand Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Nubia Brand
The main advantage of trading using opposite Travelers Companies and Nubia Brand positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Nubia Brand 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 Nubia Brand will offset losses from the drop in Nubia Brand's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |