Correlation Between Travelers Companies and HUMANA
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By analyzing existing cross correlation between The Travelers Companies and HUMANA INC 395, you can compare the effects of market volatilities on Travelers Companies and HUMANA 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 HUMANA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and HUMANA.
Diversification Opportunities for Travelers Companies and HUMANA
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and HUMANA is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and HUMANA INC 395 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUMANA INC 5 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 HUMANA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUMANA INC 5 has no effect on the direction of Travelers Companies i.e., Travelers Companies and HUMANA go up and down completely randomly.
Pair Corralation between Travelers Companies and HUMANA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 6.65 times more return on investment than HUMANA. However, Travelers Companies is 6.65 times more volatile than HUMANA INC 395. It trades about 0.13 of its potential returns per unit of risk. HUMANA INC 395 is currently generating about 0.03 per unit of risk. If you would invest 20,648 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 5,956 from holding The Travelers Companies or generate 28.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.8% |
| Values | Daily Returns |
The Travelers Companies vs. HUMANA INC 395
Performance |
| Timeline |
| The Travelers Companies |
| HUMANA INC 5 |
Travelers Companies and HUMANA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and HUMANA
The main advantage of trading using opposite Travelers Companies and HUMANA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, HUMANA 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 HUMANA will offset losses from the drop in HUMANA's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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