Correlation Between Travelers Companies and AMAZONCOM
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By analyzing existing cross correlation between The Travelers Companies and AMAZONCOM INC, you can compare the effects of market volatilities on Travelers Companies and AMAZONCOM 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 AMAZONCOM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and AMAZONCOM.
Diversification Opportunities for Travelers Companies and AMAZONCOM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and AMAZONCOM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and AMAZONCOM INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZONCOM INC 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 AMAZONCOM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZONCOM INC has no effect on the direction of Travelers Companies i.e., Travelers Companies and AMAZONCOM go up and down completely randomly.
Pair Corralation between Travelers Companies and AMAZONCOM
If you would invest 17,036 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 9,315 from holding The Travelers Companies or generate 54.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.27% |
| Values | Daily Returns |
The Travelers Companies vs. AMAZONCOM INC
Performance |
| Timeline |
| The Travelers Companies |
| AMAZONCOM INC |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Travelers Companies and AMAZONCOM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and AMAZONCOM
The main advantage of trading using opposite Travelers Companies and AMAZONCOM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, AMAZONCOM 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 AMAZONCOM will offset losses from the drop in AMAZONCOM's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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