Correlation Between Travelers Companies and 281020AT4
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By analyzing existing cross correlation between The Travelers Companies and EIX 5, you can compare the effects of market volatilities on Travelers Companies and 281020AT4 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 281020AT4. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 281020AT4.
Diversification Opportunities for Travelers Companies and 281020AT4
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 281020AT4 is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and EIX 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 281020AT4 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 281020AT4. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 281020AT4 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 281020AT4 go up and down completely randomly.
Pair Corralation between Travelers Companies and 281020AT4
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.72 times more return on investment than 281020AT4. However, The Travelers Companies is 1.39 times less risky than 281020AT4. It trades about 0.15 of its potential returns per unit of risk. EIX 5 is currently generating about -0.12 per unit of risk. If you would invest 22,688 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 3,916 from holding The Travelers Companies or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 96.88% |
| Values | Daily Returns |
The Travelers Companies vs. EIX 5
Performance |
| Timeline |
| The Travelers Companies |
| 281020AT4 |
Travelers Companies and 281020AT4 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 281020AT4
The main advantage of trading using opposite Travelers Companies and 281020AT4 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 281020AT4 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 281020AT4 will offset losses from the drop in 281020AT4's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
| 281020AT4 vs. National CineMedia | 281020AT4 vs. Reservoir Media | 281020AT4 vs. SEI Investments | 281020AT4 vs. Canlan Ice Sports |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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