Correlation Between Travelers Companies and CITIGROUP
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By analyzing existing cross correlation between The Travelers Companies and CITIGROUP INC 465, you can compare the effects of market volatilities on Travelers Companies and CITIGROUP 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 CITIGROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and CITIGROUP.
Diversification Opportunities for Travelers Companies and CITIGROUP
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and CITIGROUP is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and CITIGROUP INC 465 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIGROUP INC 465 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 CITIGROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIGROUP INC 465 has no effect on the direction of Travelers Companies i.e., Travelers Companies and CITIGROUP go up and down completely randomly.
Pair Corralation between Travelers Companies and CITIGROUP
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.26 times more return on investment than CITIGROUP. However, Travelers Companies is 1.26 times more volatile than CITIGROUP INC 465. It trades about 0.32 of its potential returns per unit of risk. CITIGROUP INC 465 is currently generating about 0.07 per unit of risk. If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. CITIGROUP INC 465
Performance |
| Timeline |
| The Travelers Companies |
| CITIGROUP INC 465 |
Travelers Companies and CITIGROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and CITIGROUP
The main advantage of trading using opposite Travelers Companies and CITIGROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, CITIGROUP 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 CITIGROUP will offset losses from the drop in CITIGROUP's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
| CITIGROUP vs. SunOpta | CITIGROUP vs. National CineMedia | CITIGROUP vs. National Vision Holdings | CITIGROUP vs. Weibo Corp |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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