Correlation Between Travelers Companies and New York
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and New York 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 New York 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 New York Community, you can compare the effects of market volatilities on Travelers Companies and New York 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 New York. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and New York.
Diversification Opportunities for Travelers Companies and New York
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Travelers and New is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and New York Community in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New York Community 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 New York. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New York Community has no effect on the direction of Travelers Companies i.e., Travelers Companies and New York go up and down completely randomly.
Pair Corralation between Travelers Companies and New York
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.48 times more return on investment than New York. However, The Travelers Companies is 2.06 times less risky than New York. It trades about 0.16 of its potential returns per unit of risk. New York Community is currently generating about 0.03 per unit of risk. If you would invest 22,688 in The Travelers Companies on August 31, 2024 and sell it today you would earn a total of 3,978 from holding The Travelers Companies or generate 17.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
The Travelers Companies vs. New York Community
Performance |
| Timeline |
| The Travelers Companies |
| New York Community |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Weak
Travelers Companies and New York Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and New York
The main advantage of trading using opposite Travelers Companies and New York positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, New York 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 New York will offset losses from the drop in New York's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. Selective Insurance Group |
| New York vs. KeyCorp | New York vs. Fifth Third Bancorp | New York vs. Regions Financial | New York vs. Zions Bancorporation |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stocks Directory Find actively traded stocks across global markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |