Correlation Between Travelers Companies and CABKSM
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By analyzing existing cross correlation between The Travelers Companies and CABKSM 6208 18 JAN 29, you can compare the effects of market volatilities on Travelers Companies and CABKSM 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 CABKSM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and CABKSM.
Diversification Opportunities for Travelers Companies and CABKSM
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and CABKSM is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and CABKSM 6208 18 JAN 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CABKSM 6208 18 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 CABKSM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CABKSM 6208 18 has no effect on the direction of Travelers Companies i.e., Travelers Companies and CABKSM go up and down completely randomly.
Pair Corralation between Travelers Companies and CABKSM
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.98 times more return on investment than CABKSM. However, Travelers Companies is 2.98 times more volatile than CABKSM 6208 18 JAN 29. It trades about 0.06 of its potential returns per unit of risk. CABKSM 6208 18 JAN 29 is currently generating about 0.02 per unit of risk. If you would invest 17,899 in The Travelers Companies on August 30, 2024 and sell it today you would earn a total of 8,767 from holding The Travelers Companies or generate 48.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 63.64% |
| Values | Daily Returns |
The Travelers Companies vs. CABKSM 6208 18 JAN 29
Performance |
| Timeline |
| The Travelers Companies |
| CABKSM 6208 18 |
Travelers Companies and CABKSM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and CABKSM
The main advantage of trading using opposite Travelers Companies and CABKSM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, CABKSM 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 CABKSM will offset losses from the drop in CABKSM'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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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