Correlation Between Travelers Companies and 345397XL2
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Travelers Companies and FORD MTR CR, you can compare the effects of market volatilities on Travelers Companies and 345397XL2 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 345397XL2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 345397XL2.
Diversification Opportunities for Travelers Companies and 345397XL2
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 345397XL2 is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and FORD MTR CR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FORD MTR CR 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 345397XL2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FORD MTR CR has no effect on the direction of Travelers Companies i.e., Travelers Companies and 345397XL2 go up and down completely randomly.
Pair Corralation between Travelers Companies and 345397XL2
Considering the 90-day investment horizon The Travelers Companies is expected to generate 3.51 times more return on investment than 345397XL2. However, Travelers Companies is 3.51 times more volatile than FORD MTR CR. It trades about 0.24 of its potential returns per unit of risk. FORD MTR CR is currently generating about -0.21 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. FORD MTR CR
Performance |
| Timeline |
| The Travelers Companies |
| FORD MTR CR |
Travelers Companies and 345397XL2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 345397XL2
The main advantage of trading using opposite Travelers Companies and 345397XL2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 345397XL2 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 345397XL2 will offset losses from the drop in 345397XL2's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. Selective Insurance Group |
| 345397XL2 vs. Freedom Internet Group | 345397XL2 vs. Deluxe | 345397XL2 vs. Western Digital | 345397XL2 vs. Boston Omaha Corp |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |