Correlation Between Travelers Companies and OPY Acquisition
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and OPY Acquisition 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 OPY Acquisition 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 OPY Acquisition I, you can compare the effects of market volatilities on Travelers Companies and OPY Acquisition 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 OPY Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and OPY Acquisition.
Diversification Opportunities for Travelers Companies and OPY Acquisition
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and OPY is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and OPY Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPY Acquisition I 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 OPY Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPY Acquisition I has no effect on the direction of Travelers Companies i.e., Travelers Companies and OPY Acquisition go up and down completely randomly.
Pair Corralation between Travelers Companies and OPY Acquisition
If you would invest 15,939 in The Travelers Companies on August 29, 2024 and sell it today you would earn a total of 10,727 from holding The Travelers Companies or generate 67.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.34% |
| Values | Daily Returns |
The Travelers Companies vs. OPY Acquisition I
Performance |
| Timeline |
| The Travelers Companies |
| OPY Acquisition I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and OPY Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and OPY Acquisition
The main advantage of trading using opposite Travelers Companies and OPY Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, OPY Acquisition 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 OPY Acquisition will offset losses from the drop in OPY Acquisition's long position.| Travelers Companies vs. Argo Group International | Travelers Companies vs. Donegal Group A | Travelers Companies vs. Selective Insurance Group |
| OPY Acquisition vs. Patria Latin American | OPY Acquisition vs. Healthcare AI Acquisition | OPY Acquisition vs. Metal Sky Star |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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