Correlation Between Travelers Companies and 26441CAT2
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By analyzing existing cross correlation between The Travelers Companies and DUKE ENERGY P, you can compare the effects of market volatilities on Travelers Companies and 26441CAT2 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 26441CAT2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 26441CAT2.
Diversification Opportunities for Travelers Companies and 26441CAT2
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 26441CAT2 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and DUKE ENERGY P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUKE ENERGY P 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 26441CAT2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUKE ENERGY P has no effect on the direction of Travelers Companies i.e., Travelers Companies and 26441CAT2 go up and down completely randomly.
Pair Corralation between Travelers Companies and 26441CAT2
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.33 times more return on investment than 26441CAT2. However, Travelers Companies is 1.33 times more volatile than DUKE ENERGY P. It trades about 0.13 of its potential returns per unit of risk. DUKE ENERGY P is currently generating about -0.05 per unit of risk. If you would invest 25,237 in The Travelers Companies on August 27, 2024 and sell it today you would earn a total of 885.00 from holding The Travelers Companies or generate 3.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Travelers Companies vs. DUKE ENERGY P
Performance |
| Timeline |
| The Travelers Companies |
| DUKE ENERGY P |
Travelers Companies and 26441CAT2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 26441CAT2
The main advantage of trading using opposite Travelers Companies and 26441CAT2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 26441CAT2 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 26441CAT2 will offset losses from the drop in 26441CAT2's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| 26441CAT2 vs. AEP TEX INC | 26441CAT2 vs. US BANK NATIONAL | 26441CAT2 vs. Dupont De Nemours | 26441CAT2 vs. The Travelers Companies |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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