Correlation Between Travelers Companies and 19123MAF0
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By analyzing existing cross correlation between The Travelers Companies and CCEP 15 15 JAN 27, you can compare the effects of market volatilities on Travelers Companies and 19123MAF0 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 19123MAF0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 19123MAF0.
Diversification Opportunities for Travelers Companies and 19123MAF0
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and 19123MAF0 is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and CCEP 15 15 JAN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCEP 15 15 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 19123MAF0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCEP 15 15 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 19123MAF0 go up and down completely randomly.
Pair Corralation between Travelers Companies and 19123MAF0
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.19 times more return on investment than 19123MAF0. However, Travelers Companies is 2.19 times more volatile than CCEP 15 15 JAN 27. It trades about 0.06 of its potential returns per unit of risk. CCEP 15 15 JAN 27 is currently generating about 0.04 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 Together |
| Strength | Significant |
| Accuracy | 25.25% |
| Values | Daily Returns |
The Travelers Companies vs. CCEP 15 15 JAN 27
Performance |
| Timeline |
| The Travelers Companies |
| CCEP 15 15 |
Travelers Companies and 19123MAF0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 19123MAF0
The main advantage of trading using opposite Travelers Companies and 19123MAF0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 19123MAF0 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 19123MAF0 will offset losses from the drop in 19123MAF0's long position.| Travelers Companies vs. Argo Group International | Travelers Companies vs. Donegal Group A | Travelers Companies vs. Selective Insurance Group |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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