Correlation Between Travelers Companies and Allegheny
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By analyzing existing cross correlation between The Travelers Companies and Allegheny Technologies 5875, you can compare the effects of market volatilities on Travelers Companies and Allegheny 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 Allegheny. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Allegheny.
Diversification Opportunities for Travelers Companies and Allegheny
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Allegheny is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Allegheny Technologies 5875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allegheny Technologies 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 Allegheny. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allegheny Technologies has no effect on the direction of Travelers Companies i.e., Travelers Companies and Allegheny go up and down completely randomly.
Pair Corralation between Travelers Companies and Allegheny
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.14 times more return on investment than Allegheny. However, Travelers Companies is 1.14 times more volatile than Allegheny Technologies 5875. It trades about 0.06 of its potential returns per unit of risk. Allegheny Technologies 5875 is currently generating about 0.01 per unit of risk. If you would invest 17,699 in The Travelers Companies on September 5, 2024 and sell it today you would earn a total of 8,360 from holding The Travelers Companies or generate 47.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.57% |
| Values | Daily Returns |
The Travelers Companies vs. Allegheny Technologies 5875
Performance |
| Timeline |
| The Travelers Companies |
| Allegheny Technologies |
Travelers Companies and Allegheny Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Allegheny
The main advantage of trading using opposite Travelers Companies and Allegheny positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Allegheny 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 Allegheny will offset losses from the drop in Allegheny's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| Allegheny vs. The Travelers Companies | Allegheny vs. GE Aerospace | Allegheny vs. Walmart | Allegheny vs. Pfizer Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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