Correlation Between Travelers Companies and Pimco All
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Pimco All 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 Pimco All 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 Pimco All Asset, you can compare the effects of market volatilities on Travelers Companies and Pimco All 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 Pimco All. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Pimco All.
Diversification Opportunities for Travelers Companies and Pimco All
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and PIMCO is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Pimco All Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pimco All Asset 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 Pimco All. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pimco All Asset has no effect on the direction of Travelers Companies i.e., Travelers Companies and Pimco All go up and down completely randomly.
Pair Corralation between Travelers Companies and Pimco All
Considering the 90-day investment horizon The Travelers Companies is expected to generate 3.02 times more return on investment than Pimco All. However, Travelers Companies is 3.02 times more volatile than Pimco All Asset. It trades about 0.2 of its potential returns per unit of risk. Pimco All Asset is currently generating about 0.12 per unit of risk. If you would invest 25,237 in The Travelers Companies on August 29, 2024 and sell it today you would earn a total of 1,456 from holding The Travelers Companies or generate 5.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Pimco All Asset
Performance |
| Timeline |
| The Travelers Companies |
| Pimco All Asset |
Travelers Companies and Pimco All Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Pimco All
The main advantage of trading using opposite Travelers Companies and Pimco All positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Pimco All 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 Pimco All will offset losses from the drop in Pimco All's long position.| Travelers Companies vs. Argo Group International | Travelers Companies vs. Donegal Group A | Travelers Companies vs. Selective Insurance Group |
| Pimco All vs. Mirova Global Green | Pimco All vs. Ab Select Longshort | Pimco All vs. Versatile Bond Portfolio | Pimco All vs. Vanguard Emerging Markets |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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