Correlation Between Travelers Companies and 37940XAQ5
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By analyzing existing cross correlation between The Travelers Companies and GPN 54 15 AUG 32, you can compare the effects of market volatilities on Travelers Companies and 37940XAQ5 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 37940XAQ5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 37940XAQ5.
Diversification Opportunities for Travelers Companies and 37940XAQ5
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 37940XAQ5 is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and GPN 54 15 AUG 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GPN 54 15 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 37940XAQ5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GPN 54 15 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 37940XAQ5 go up and down completely randomly.
Pair Corralation between Travelers Companies and 37940XAQ5
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.53 times more return on investment than 37940XAQ5. However, The Travelers Companies is 1.9 times less risky than 37940XAQ5. It trades about 0.26 of its potential returns per unit of risk. GPN 54 15 AUG 32 is currently generating about -0.2 per unit of risk. If you would invest 24,867 in The Travelers Companies on August 30, 2024 and sell it today you would earn a total of 1,799 from holding The Travelers Companies or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
The Travelers Companies vs. GPN 54 15 AUG 32
Performance |
| Timeline |
| The Travelers Companies |
| GPN 54 15 |
Travelers Companies and 37940XAQ5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 37940XAQ5
The main advantage of trading using opposite Travelers Companies and 37940XAQ5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 37940XAQ5 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 37940XAQ5 will offset losses from the drop in 37940XAQ5's long position.| Travelers Companies vs. Axa Equitable Holdings | Travelers Companies vs. American International Group | Travelers Companies vs. Arch Capital Group | Travelers Companies vs. Sun Life Financial |
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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