Correlation Between Travelers Companies and BIOGEN
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By analyzing existing cross correlation between The Travelers Companies and BIOGEN INC 52, you can compare the effects of market volatilities on Travelers Companies and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and BIOGEN.
Diversification Opportunities for Travelers Companies and BIOGEN
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and BIOGEN is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and BIOGEN INC 52 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN INC 52 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC 52 has no effect on the direction of Travelers Companies i.e., Travelers Companies and BIOGEN go up and down completely randomly.
Pair Corralation between Travelers Companies and BIOGEN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.42 times more return on investment than BIOGEN. However, Travelers Companies is 1.42 times more volatile than BIOGEN INC 52. It trades about 0.19 of its potential returns per unit of risk. BIOGEN INC 52 is currently generating about 0.01 per unit of risk. If you would invest 20,770 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 5,581 from holding The Travelers Companies or generate 26.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
The Travelers Companies vs. BIOGEN INC 52
Performance |
| Timeline |
| The Travelers Companies |
| BIOGEN INC 52 |
Travelers Companies and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and BIOGEN
The main advantage of trading using opposite Travelers Companies and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| BIOGEN vs. Kaltura | BIOGEN vs. Senmiao Technology | BIOGEN vs. Playtika Holding Corp | BIOGEN vs. Dave Busters Entertainment |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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