Correlation Between Travelers Companies and COLUMBIA
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By analyzing existing cross correlation between The Travelers Companies and COLUMBIA PIPELINE GROUP, you can compare the effects of market volatilities on Travelers Companies and COLUMBIA 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 COLUMBIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and COLUMBIA.
Diversification Opportunities for Travelers Companies and COLUMBIA
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and COLUMBIA is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and COLUMBIA PIPELINE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COLUMBIA PIPELINE 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 COLUMBIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COLUMBIA PIPELINE has no effect on the direction of Travelers Companies i.e., Travelers Companies and COLUMBIA go up and down completely randomly.
Pair Corralation between Travelers Companies and COLUMBIA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 9.86 times more return on investment than COLUMBIA. However, Travelers Companies is 9.86 times more volatile than COLUMBIA PIPELINE GROUP. It trades about 0.11 of its potential returns per unit of risk. COLUMBIA PIPELINE GROUP is currently generating about 0.01 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 | Very Weak |
| Accuracy | 95.95% |
| Values | Daily Returns |
The Travelers Companies vs. COLUMBIA PIPELINE GROUP
Performance |
| Timeline |
| The Travelers Companies |
| COLUMBIA PIPELINE |
Travelers Companies and COLUMBIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and COLUMBIA
The main advantage of trading using opposite Travelers Companies and COLUMBIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, COLUMBIA 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 COLUMBIA will offset losses from the drop in COLUMBIA's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| COLUMBIA vs. Fomento Economico Mexicano | COLUMBIA vs. Sealed Air | COLUMBIA vs. Celsius Holdings | COLUMBIA vs. The Mosaic |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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