Correlation Between Travelers Companies and 06406RBA4
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By analyzing existing cross correlation between The Travelers Companies and BK 205 26 JAN 27, you can compare the effects of market volatilities on Travelers Companies and 06406RBA4 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 06406RBA4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 06406RBA4.
Diversification Opportunities for Travelers Companies and 06406RBA4
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 06406RBA4 is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and BK 205 26 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BK 205 26 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 06406RBA4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BK 205 26 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 06406RBA4 go up and down completely randomly.
Pair Corralation between Travelers Companies and 06406RBA4
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.62 times more return on investment than 06406RBA4. However, Travelers Companies is 1.62 times more volatile than BK 205 26 JAN 27. It trades about 0.16 of its potential returns per unit of risk. BK 205 26 JAN 27 is currently generating about -0.32 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 Against |
| Strength | Very Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
The Travelers Companies vs. BK 205 26 JAN 27
Performance |
| Timeline |
| The Travelers Companies |
| BK 205 26 |
Travelers Companies and 06406RBA4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 06406RBA4
The main advantage of trading using opposite Travelers Companies and 06406RBA4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 06406RBA4 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 06406RBA4 will offset losses from the drop in 06406RBA4's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| 06406RBA4 vs. AEP TEX INC | 06406RBA4 vs. US BANK NATIONAL | 06406RBA4 vs. 3M Company | 06406RBA4 vs. Alcoa Corp |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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