Correlation Between Travelers Companies and BAYNGR
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By analyzing existing cross correlation between The Travelers Companies and BAYNGR 4625 25 JUN 38, you can compare the effects of market volatilities on Travelers Companies and BAYNGR 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 BAYNGR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and BAYNGR.
Diversification Opportunities for Travelers Companies and BAYNGR
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and BAYNGR is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and BAYNGR 4625 25 JUN 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAYNGR 4625 25 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 BAYNGR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAYNGR 4625 25 has no effect on the direction of Travelers Companies i.e., Travelers Companies and BAYNGR go up and down completely randomly.
Pair Corralation between Travelers Companies and BAYNGR
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.68 times more return on investment than BAYNGR. However, Travelers Companies is 1.68 times more volatile than BAYNGR 4625 25 JUN 38. It trades about 0.2 of its potential returns per unit of risk. BAYNGR 4625 25 JUN 38 is currently generating about 0.07 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 1,429 from holding The Travelers Companies or generate 5.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.61% |
| Values | Daily Returns |
The Travelers Companies vs. BAYNGR 4625 25 JUN 38
Performance |
| Timeline |
| The Travelers Companies |
| BAYNGR 4625 25 |
Travelers Companies and BAYNGR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and BAYNGR
The main advantage of trading using opposite Travelers Companies and BAYNGR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, BAYNGR 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 BAYNGR will offset losses from the drop in BAYNGR's long position.| Travelers Companies vs. Argo Group International | Travelers Companies vs. Donegal Group A | Travelers Companies vs. Selective Insurance Group |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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