Correlation Between Travelers Companies and AALLN
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By analyzing existing cross correlation between The Travelers Companies and AALLN 3875 16 MAR 29, you can compare the effects of market volatilities on Travelers Companies and AALLN 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 AALLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and AALLN.
Diversification Opportunities for Travelers Companies and AALLN
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and AALLN is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and AALLN 3875 16 MAR 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AALLN 3875 16 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 AALLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AALLN 3875 16 has no effect on the direction of Travelers Companies i.e., Travelers Companies and AALLN go up and down completely randomly.
Pair Corralation between Travelers Companies and AALLN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.4 times more return on investment than AALLN. However, Travelers Companies is 4.4 times more volatile than AALLN 3875 16 MAR 29. It trades about 0.16 of its potential returns per unit of risk. AALLN 3875 16 MAR 29 is currently generating about -0.3 per unit of risk. If you would invest 25,237 in The Travelers Companies on August 29, 2024 and sell it today you would earn a total of 1,140 from holding The Travelers Companies or generate 4.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 22.73% |
| Values | Daily Returns |
The Travelers Companies vs. AALLN 3875 16 MAR 29
Performance |
| Timeline |
| The Travelers Companies |
| AALLN 3875 16 |
Travelers Companies and AALLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and AALLN
The main advantage of trading using opposite Travelers Companies and AALLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, AALLN 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 AALLN will offset losses from the drop in AALLN's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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