Correlation Between Travelers Companies and GENERAL
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By analyzing existing cross correlation between The Travelers Companies and GENERAL ELEC CAP, you can compare the effects of market volatilities on Travelers Companies and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and GENERAL.
Diversification Opportunities for Travelers Companies and GENERAL
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Travelers and GENERAL is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and GENERAL ELEC CAP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL ELEC CAP 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL ELEC CAP has no effect on the direction of Travelers Companies i.e., Travelers Companies and GENERAL go up and down completely randomly.
Pair Corralation between Travelers Companies and GENERAL
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.74 times more return on investment than GENERAL. However, Travelers Companies is 4.74 times more volatile than GENERAL ELEC CAP. It trades about 0.08 of its potential returns per unit of risk. GENERAL ELEC CAP is currently generating about -1.11 per unit of risk. If you would invest 24,168 in The Travelers Companies on November 8, 2024 and sell it today you would earn a total of 596.00 from holding The Travelers Companies or generate 2.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 14.29% |
| Values | Daily Returns |
The Travelers Companies vs. GENERAL ELEC CAP
Performance |
| Timeline |
| The Travelers Companies |
| GENERAL ELEC CAP |
Travelers Companies and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and GENERAL
The main advantage of trading using opposite Travelers Companies and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.| Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. Markel | Travelers Companies vs. RLI Corp |
| GENERAL vs. Autohome | GENERAL vs. LAir Liquide SA | GENERAL vs. HF Sinclair Corp | GENERAL vs. Federal Home Loan |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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