Correlation Between Travelers Companies and Ocuphire Pharma
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Ocuphire Pharma 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 Ocuphire Pharma 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 Ocuphire Pharma, you can compare the effects of market volatilities on Travelers Companies and Ocuphire Pharma 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 Ocuphire Pharma. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Ocuphire Pharma.
Diversification Opportunities for Travelers Companies and Ocuphire Pharma
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Ocuphire is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Ocuphire Pharma in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocuphire Pharma 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 Ocuphire Pharma. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocuphire Pharma has no effect on the direction of Travelers Companies i.e., Travelers Companies and Ocuphire Pharma go up and down completely randomly.
Pair Corralation between Travelers Companies and Ocuphire Pharma
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.22 times more return on investment than Ocuphire Pharma. However, The Travelers Companies is 4.49 times less risky than Ocuphire Pharma. It trades about 0.08 of its potential returns per unit of risk. Ocuphire Pharma is currently generating about -0.58 per unit of risk. If you would invest 25,642 in The Travelers Companies on August 25, 2024 and sell it today you would earn a total of 605.00 from holding The Travelers Companies or generate 2.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 13.64% |
| Values | Daily Returns |
The Travelers Companies vs. Ocuphire Pharma
Performance |
| Timeline |
| The Travelers Companies |
| Ocuphire Pharma |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Ocuphire Pharma Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Ocuphire Pharma
The main advantage of trading using opposite Travelers Companies and Ocuphire Pharma positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Ocuphire Pharma 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 Ocuphire Pharma will offset losses from the drop in Ocuphire Pharma's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| Ocuphire Pharma vs. Reviva Pharmaceuticals Holdings | Ocuphire Pharma vs. Protalix Biotherapeutics | Ocuphire Pharma vs. Eyepoint Pharmaceuticals | Ocuphire Pharma vs. Sellas Life Sciences |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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