Correlation Between Travelers Companies and EXELON
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By analyzing existing cross correlation between The Travelers Companies and EXELON GENERATION LLC, you can compare the effects of market volatilities on Travelers Companies and EXELON 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 EXELON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and EXELON.
Diversification Opportunities for Travelers Companies and EXELON
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and EXELON is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and EXELON GENERATION LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXELON GENERATION LLC 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 EXELON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXELON GENERATION LLC has no effect on the direction of Travelers Companies i.e., Travelers Companies and EXELON go up and down completely randomly.
Pair Corralation between Travelers Companies and EXELON
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.99 times more return on investment than EXELON. However, The Travelers Companies is 1.01 times less risky than EXELON. It trades about 0.24 of its potential returns per unit of risk. EXELON GENERATION LLC is currently generating about -0.07 per unit of risk. If you would invest 25,009 in The Travelers Companies on August 31, 2024 and sell it today you would earn a total of 1,657 from holding The Travelers Companies or generate 6.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. EXELON GENERATION LLC
Performance |
| Timeline |
| The Travelers Companies |
| EXELON GENERATION LLC |
Travelers Companies and EXELON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and EXELON
The main advantage of trading using opposite Travelers Companies and EXELON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, EXELON 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 EXELON will offset losses from the drop in EXELON's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. CNA Financial |
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