Correlation Between Travelers Companies and Slam Corp
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Slam Corp 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 Slam Corp 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 Slam Corp, you can compare the effects of market volatilities on Travelers Companies and Slam Corp 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 Slam Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Slam Corp.
Diversification Opportunities for Travelers Companies and Slam Corp
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Slam is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Slam Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Slam Corp 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 Slam Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Slam Corp has no effect on the direction of Travelers Companies i.e., Travelers Companies and Slam Corp go up and down completely randomly.
Pair Corralation between Travelers Companies and Slam Corp
If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Travelers Companies vs. Slam Corp
Performance |
| Timeline |
| The Travelers Companies |
| Slam Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and Slam Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Slam Corp
The main advantage of trading using opposite Travelers Companies and Slam Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Slam Corp 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 Slam Corp will offset losses from the drop in Slam Corp's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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