Correlation Between Travelers Companies and 459200KW0
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By analyzing existing cross correlation between The Travelers Companies and IBM 45 06 FEB 26, you can compare the effects of market volatilities on Travelers Companies and 459200KW0 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 459200KW0. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 459200KW0.
Diversification Opportunities for Travelers Companies and 459200KW0
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 459200KW0 is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and IBM 45 06 FEB 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IBM 45 06 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 459200KW0. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IBM 45 06 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 459200KW0 go up and down completely randomly.
Pair Corralation between Travelers Companies and 459200KW0
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.83 times more return on investment than 459200KW0. However, Travelers Companies is 2.83 times more volatile than IBM 45 06 FEB 26. It trades about 0.32 of its potential returns per unit of risk. IBM 45 06 FEB 26 is currently generating about -0.16 per unit of risk. If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
The Travelers Companies vs. IBM 45 06 FEB 26
Performance |
| Timeline |
| The Travelers Companies |
| IBM 45 06 |
Travelers Companies and 459200KW0 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 459200KW0
The main advantage of trading using opposite Travelers Companies and 459200KW0 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 459200KW0 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 459200KW0 will offset losses from the drop in 459200KW0's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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