Correlation Between Travelers Companies and HERSHEY
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By analyzing existing cross correlation between The Travelers Companies and HERSHEY 72 percent, you can compare the effects of market volatilities on Travelers Companies and HERSHEY 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 HERSHEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and HERSHEY.
Diversification Opportunities for Travelers Companies and HERSHEY
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Travelers and HERSHEY is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and HERSHEY 72 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HERSHEY 72 percent 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 HERSHEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HERSHEY 72 percent has no effect on the direction of Travelers Companies i.e., Travelers Companies and HERSHEY go up and down completely randomly.
Pair Corralation between Travelers Companies and HERSHEY
Considering the 90-day investment horizon Travelers Companies is expected to generate 2.2 times less return on investment than HERSHEY. But when comparing it to its historical volatility, The Travelers Companies is 1.96 times less risky than HERSHEY. It trades about 0.28 of its potential returns per unit of risk. HERSHEY 72 percent is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 10,743 in HERSHEY 72 percent on September 5, 2024 and sell it today you would earn a total of 382.00 from holding HERSHEY 72 percent or generate 3.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 22.73% |
| Values | Daily Returns |
The Travelers Companies vs. HERSHEY 72 percent
Performance |
| Timeline |
| The Travelers Companies |
| HERSHEY 72 percent |
Travelers Companies and HERSHEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and HERSHEY
The main advantage of trading using opposite Travelers Companies and HERSHEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, HERSHEY 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 HERSHEY will offset losses from the drop in HERSHEY's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| HERSHEY vs. The Travelers Companies | HERSHEY vs. GE Aerospace | HERSHEY vs. Walmart | HERSHEY vs. Pfizer Inc |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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