Correlation Between Travelers Companies and APPLE
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By analyzing existing cross correlation between The Travelers Companies and APPLE INC 245, you can compare the effects of market volatilities on Travelers Companies and APPLE 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 APPLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and APPLE.
Diversification Opportunities for Travelers Companies and APPLE
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and APPLE is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and APPLE INC 245 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APPLE INC 245 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 APPLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APPLE INC 245 has no effect on the direction of Travelers Companies i.e., Travelers Companies and APPLE go up and down completely randomly.
Pair Corralation between Travelers Companies and APPLE
Considering the 90-day investment horizon The Travelers Companies is expected to generate 5.27 times more return on investment than APPLE. However, Travelers Companies is 5.27 times more volatile than APPLE INC 245. It trades about 0.11 of its potential returns per unit of risk. APPLE INC 245 is currently generating about 0.01 per unit of risk. If you would invest 17,984 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
The Travelers Companies vs. APPLE INC 245
Performance |
| Timeline |
| The Travelers Companies |
| APPLE INC 245 |
Travelers Companies and APPLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and APPLE
The main advantage of trading using opposite Travelers Companies and APPLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, APPLE 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 APPLE will offset losses from the drop in APPLE's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| APPLE vs. Western Digital | APPLE vs. Mind Technology | APPLE vs. Arrow Electronics | APPLE vs. Iridium Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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