Correlation Between Travelers Companies and AMGEN
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By analyzing existing cross correlation between The Travelers Companies and AMGEN INC 64, you can compare the effects of market volatilities on Travelers Companies and AMGEN 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 AMGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and AMGEN.
Diversification Opportunities for Travelers Companies and AMGEN
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and AMGEN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and AMGEN INC 64 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMGEN INC 64 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 AMGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMGEN INC 64 has no effect on the direction of Travelers Companies i.e., Travelers Companies and AMGEN go up and down completely randomly.
Pair Corralation between Travelers Companies and AMGEN
Considering the 90-day investment horizon Travelers Companies is expected to generate 28.98 times less return on investment than AMGEN. But when comparing it to its historical volatility, The Travelers Companies is 38.12 times less risky than AMGEN. It trades about 0.06 of its potential returns per unit of risk. AMGEN INC 64 is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 10,975 in AMGEN INC 64 on September 4, 2024 and sell it today you would earn a total of 114.00 from holding AMGEN INC 64 or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 72.53% |
| Values | Daily Returns |
The Travelers Companies vs. AMGEN INC 64
Performance |
| Timeline |
| The Travelers Companies |
| AMGEN INC 64 |
Travelers Companies and AMGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and AMGEN
The main advantage of trading using opposite Travelers Companies and AMGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, AMGEN 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 AMGEN will offset losses from the drop in AMGEN's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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