Correlation Between Travelers Companies and CHEVRON
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By analyzing existing cross correlation between The Travelers Companies and CHEVRON USA INC, you can compare the effects of market volatilities on Travelers Companies and CHEVRON 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 CHEVRON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and CHEVRON.
Diversification Opportunities for Travelers Companies and CHEVRON
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and CHEVRON is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and CHEVRON USA INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHEVRON USA INC 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 CHEVRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHEVRON USA INC has no effect on the direction of Travelers Companies i.e., Travelers Companies and CHEVRON go up and down completely randomly.
Pair Corralation between Travelers Companies and CHEVRON
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.58 times more return on investment than CHEVRON. However, Travelers Companies is 1.58 times more volatile than CHEVRON USA INC. It trades about 0.11 of its potential returns per unit of risk. CHEVRON USA INC is currently generating about -0.04 per unit of risk. If you would invest 17,984 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 81.78% |
| Values | Daily Returns |
The Travelers Companies vs. CHEVRON USA INC
Performance |
| Timeline |
| The Travelers Companies |
| CHEVRON USA INC |
Travelers Companies and CHEVRON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and CHEVRON
The main advantage of trading using opposite Travelers Companies and CHEVRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, CHEVRON 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 CHEVRON will offset losses from the drop in CHEVRON's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| CHEVRON vs. The Travelers Companies | CHEVRON vs. GE Aerospace | CHEVRON vs. Walmart | CHEVRON vs. Pfizer Inc |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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