Correlation Between Travelers Companies and INTERNATIONAL
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By analyzing existing cross correlation between The Travelers Companies and INTERNATIONAL PAPER 5, you can compare the effects of market volatilities on Travelers Companies and INTERNATIONAL 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 INTERNATIONAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and INTERNATIONAL.
Diversification Opportunities for Travelers Companies and INTERNATIONAL
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Travelers and INTERNATIONAL is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and INTERNATIONAL PAPER 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTERNATIONAL PAPER 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 INTERNATIONAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTERNATIONAL PAPER has no effect on the direction of Travelers Companies i.e., Travelers Companies and INTERNATIONAL go up and down completely randomly.
Pair Corralation between Travelers Companies and INTERNATIONAL
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.75 times more return on investment than INTERNATIONAL. However, Travelers Companies is 1.75 times more volatile than INTERNATIONAL PAPER 5. It trades about 0.28 of its potential returns per unit of risk. INTERNATIONAL PAPER 5 is currently generating about 0.16 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 5, 2024 and sell it today you would earn a total of 1,778 from holding The Travelers Companies or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 68.18% |
| Values | Daily Returns |
The Travelers Companies vs. INTERNATIONAL PAPER 5
Performance |
| Timeline |
| The Travelers Companies |
| INTERNATIONAL PAPER |
Travelers Companies and INTERNATIONAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and INTERNATIONAL
The main advantage of trading using opposite Travelers Companies and INTERNATIONAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, INTERNATIONAL 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 INTERNATIONAL will offset losses from the drop in INTERNATIONAL's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| INTERNATIONAL vs. The Travelers Companies | INTERNATIONAL vs. GE Aerospace | INTERNATIONAL vs. Walmart | INTERNATIONAL 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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