Correlation Between Travelers Companies and RPT Realty
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and RPT Realty 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 RPT Realty 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 RPT Realty, you can compare the effects of market volatilities on Travelers Companies and RPT Realty 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 RPT Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and RPT Realty.
Diversification Opportunities for Travelers Companies and RPT Realty
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Travelers and RPT is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and RPT Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RPT Realty 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 RPT Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RPT Realty has no effect on the direction of Travelers Companies i.e., Travelers Companies and RPT Realty go up and down completely randomly.
Pair Corralation between Travelers Companies and RPT Realty
If you would invest 25,009 in The Travelers Companies on August 31, 2024 and sell it today you would earn a total of 1,657 from holding The Travelers Companies or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 4.55% |
| Values | Daily Returns |
The Travelers Companies vs. RPT Realty
Performance |
| Timeline |
| The Travelers Companies |
| RPT Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and RPT Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and RPT Realty
The main advantage of trading using opposite Travelers Companies and RPT Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, RPT Realty 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 RPT Realty will offset losses from the drop in RPT Realty's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. CNA Financial |
| RPT Realty vs. Urban Edge Properties | RPT Realty vs. Kite Realty Group | RPT Realty vs. Retail Opportunity Investments | RPT Realty vs. Inventrust Properties Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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