Correlation Between Travelers Companies and ENBCN
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By analyzing existing cross correlation between The Travelers Companies and ENBCN 16 04 OCT 26, you can compare the effects of market volatilities on Travelers Companies and ENBCN 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 ENBCN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and ENBCN.
Diversification Opportunities for Travelers Companies and ENBCN
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and ENBCN is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and ENBCN 16 04 OCT 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENBCN 16 04 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 ENBCN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENBCN 16 04 has no effect on the direction of Travelers Companies i.e., Travelers Companies and ENBCN go up and down completely randomly.
Pair Corralation between Travelers Companies and ENBCN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 6.95 times more return on investment than ENBCN. However, Travelers Companies is 6.95 times more volatile than ENBCN 16 04 OCT 26. It trades about 0.12 of its potential returns per unit of risk. ENBCN 16 04 OCT 26 is currently generating about 0.1 per unit of risk. If you would invest 17,877 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 8,474 from holding The Travelers Companies or generate 47.4% 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. ENBCN 16 04 OCT 26
Performance |
| Timeline |
| The Travelers Companies |
| ENBCN 16 04 |
Travelers Companies and ENBCN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and ENBCN
The main advantage of trading using opposite Travelers Companies and ENBCN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, ENBCN 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 ENBCN will offset losses from the drop in ENBCN's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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