Correlation Between Travelers Companies and 26442CBJ2
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By analyzing existing cross correlation between The Travelers Companies and DUK 495 15 JAN 33, you can compare the effects of market volatilities on Travelers Companies and 26442CBJ2 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 26442CBJ2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 26442CBJ2.
Diversification Opportunities for Travelers Companies and 26442CBJ2
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and 26442CBJ2 is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and DUK 495 15 JAN 33 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DUK 495 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 26442CBJ2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DUK 495 15 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 26442CBJ2 go up and down completely randomly.
Pair Corralation between Travelers Companies and 26442CBJ2
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the 26442CBJ2. In addition to that, Travelers Companies is 2.52 times more volatile than DUK 495 15 JAN 33. It trades about -0.03 of its total potential returns per unit of risk. DUK 495 15 JAN 33 is currently generating about 0.0 per unit of volatility. If you would invest 9,858 in DUK 495 15 JAN 33 on November 28, 2024 and sell it today you would earn a total of 1.00 from holding DUK 495 15 JAN 33 or generate 0.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Travelers Companies vs. DUK 495 15 JAN 33
Performance |
| Timeline |
| The Travelers Companies |
| DUK 495 15 |
Travelers Companies and 26442CBJ2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 26442CBJ2
The main advantage of trading using opposite Travelers Companies and 26442CBJ2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 26442CBJ2 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 26442CBJ2 will offset losses from the drop in 26442CBJ2's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| 26442CBJ2 vs. Major Drilling Group | 26442CBJ2 vs. Noble plc | 26442CBJ2 vs. Vantage Drilling International | 26442CBJ2 vs. Helmerich and Payne |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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