Correlation Between Travelers Companies and Macquarie ETF
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Macquarie ETF 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 Macquarie ETF 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 Macquarie ETF Trust, you can compare the effects of market volatilities on Travelers Companies and Macquarie ETF 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 Macquarie ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Macquarie ETF.
Diversification Opportunities for Travelers Companies and Macquarie ETF
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Macquarie is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Macquarie ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Macquarie ETF Trust 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 Macquarie ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Macquarie ETF Trust has no effect on the direction of Travelers Companies i.e., Travelers Companies and Macquarie ETF go up and down completely randomly.
Pair Corralation between Travelers Companies and Macquarie ETF
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.99 times more return on investment than Macquarie ETF. However, The Travelers Companies is 1.01 times less risky than Macquarie ETF. It trades about 0.06 of its potential returns per unit of risk. Macquarie ETF Trust is currently generating about 0.03 per unit of risk. If you would invest 17,786 in The Travelers Companies on November 9, 2024 and sell it today you would earn a total of 6,978 from holding The Travelers Companies or generate 39.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 59.43% |
| Values | Daily Returns |
The Travelers Companies vs. Macquarie ETF Trust
Performance |
| Timeline |
| The Travelers Companies |
| Macquarie ETF Trust |
Travelers Companies and Macquarie ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Macquarie ETF
The main advantage of trading using opposite Travelers Companies and Macquarie ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Macquarie ETF 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 Macquarie ETF will offset losses from the drop in Macquarie ETF's long position.| Travelers Companies vs. Great Western Minerals | Travelers Companies vs. Enterprise Bancorp | Travelers Companies vs. T Rowe Price | Travelers Companies vs. Aviat Networks |
| Macquarie ETF vs. Freedom Day Dividend | Macquarie ETF vs. Franklin Templeton ETF | Macquarie ETF vs. iShares MSCI China | Macquarie ETF vs. Tidal Trust II |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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