Correlation Between Travelers Companies and COMCAST
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By analyzing existing cross correlation between The Travelers Companies and COMCAST P NEW, you can compare the effects of market volatilities on Travelers Companies and COMCAST 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 COMCAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and COMCAST.
Diversification Opportunities for Travelers Companies and COMCAST
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and COMCAST is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and COMCAST P NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COMCAST P NEW 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 COMCAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COMCAST P NEW has no effect on the direction of Travelers Companies i.e., Travelers Companies and COMCAST go up and down completely randomly.
Pair Corralation between Travelers Companies and COMCAST
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.23 times more return on investment than COMCAST. However, Travelers Companies is 1.23 times more volatile than COMCAST P NEW. It trades about 0.12 of its potential returns per unit of risk. COMCAST P NEW is currently generating about 0.03 per unit of risk. If you would invest 20,842 in The Travelers Companies on August 24, 2024 and sell it today you would earn a total of 5,239 from holding The Travelers Companies or generate 25.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
The Travelers Companies vs. COMCAST P NEW
Performance |
| Timeline |
| The Travelers Companies |
| COMCAST P NEW |
Travelers Companies and COMCAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and COMCAST
The main advantage of trading using opposite Travelers Companies and COMCAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, COMCAST 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 COMCAST will offset losses from the drop in COMCAST's long position.| Travelers Companies vs. Small Cap Core | Travelers Companies vs. FitLife Brands, Common | Travelers Companies vs. Mutual Of America | Travelers Companies vs. Gfl Environmental Holdings |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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