Correlation Between Travelers Companies and ASTRAZENECA
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By analyzing existing cross correlation between The Travelers Companies and ASTRAZENECA PLC 4375, you can compare the effects of market volatilities on Travelers Companies and ASTRAZENECA 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 ASTRAZENECA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and ASTRAZENECA.
Diversification Opportunities for Travelers Companies and ASTRAZENECA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and ASTRAZENECA is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and ASTRAZENECA PLC 4375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASTRAZENECA PLC 4375 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 ASTRAZENECA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASTRAZENECA PLC 4375 has no effect on the direction of Travelers Companies i.e., Travelers Companies and ASTRAZENECA go up and down completely randomly.
Pair Corralation between Travelers Companies and ASTRAZENECA
Considering the 90-day investment horizon Travelers Companies is expected to generate 55.3 times less return on investment than ASTRAZENECA. But when comparing it to its historical volatility, The Travelers Companies is 53.2 times less risky than ASTRAZENECA. It trades about 0.06 of its potential returns per unit of risk. ASTRAZENECA PLC 4375 is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,614 in ASTRAZENECA PLC 4375 on September 3, 2024 and sell it today you would lose (751.00) from holding ASTRAZENECA PLC 4375 or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 74.34% |
| Values | Daily Returns |
The Travelers Companies vs. ASTRAZENECA PLC 4375
Performance |
| Timeline |
| The Travelers Companies |
| ASTRAZENECA PLC 4375 |
Travelers Companies and ASTRAZENECA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and ASTRAZENECA
The main advantage of trading using opposite Travelers Companies and ASTRAZENECA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, ASTRAZENECA 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 ASTRAZENECA will offset losses from the drop in ASTRAZENECA's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
| ASTRAZENECA vs. The Travelers Companies | ASTRAZENECA vs. GE Aerospace | ASTRAZENECA vs. Walmart | ASTRAZENECA 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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