Correlation Between Travelers Companies and BCECN
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By analyzing existing cross correlation between The Travelers Companies and BCECN 365 17 MAR 51, you can compare the effects of market volatilities on Travelers Companies and BCECN 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 BCECN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and BCECN.
Diversification Opportunities for Travelers Companies and BCECN
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and BCECN is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and BCECN 365 17 MAR 51 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BCECN 365 17 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 BCECN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BCECN 365 17 has no effect on the direction of Travelers Companies i.e., Travelers Companies and BCECN go up and down completely randomly.
Pair Corralation between Travelers Companies and BCECN
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the BCECN. But the stock apears to be less risky and, when comparing its historical volatility, The Travelers Companies is 3.42 times less risky than BCECN. The stock trades about -0.15 of its potential returns per unit of risk. The BCECN 365 17 MAR 51 is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7,144 in BCECN 365 17 MAR 51 on September 12, 2024 and sell it today you would earn a total of 421.00 from holding BCECN 365 17 MAR 51 or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.27% |
| Values | Daily Returns |
The Travelers Companies vs. BCECN 365 17 MAR 51
Performance |
| Timeline |
| The Travelers Companies |
| BCECN 365 17 |
Travelers Companies and BCECN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and BCECN
The main advantage of trading using opposite Travelers Companies and BCECN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, BCECN 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 BCECN will offset losses from the drop in BCECN's long position.| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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