Correlation Between Travelers Companies and 465685AK1
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By analyzing existing cross correlation between The Travelers Companies and ITC HLDGS P, you can compare the effects of market volatilities on Travelers Companies and 465685AK1 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 465685AK1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 465685AK1.
Diversification Opportunities for Travelers Companies and 465685AK1
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 465685AK1 is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and ITC HLDGS P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITC HLDGS P 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 465685AK1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITC HLDGS P has no effect on the direction of Travelers Companies i.e., Travelers Companies and 465685AK1 go up and down completely randomly.
Pair Corralation between Travelers Companies and 465685AK1
Considering the 90-day investment horizon The Travelers Companies is expected to generate 6.33 times more return on investment than 465685AK1. However, Travelers Companies is 6.33 times more volatile than ITC HLDGS P. It trades about 0.13 of its potential returns per unit of risk. ITC HLDGS P is currently generating about 0.03 per unit of risk. If you would invest 16,234 in The Travelers Companies on August 25, 2024 and sell it today you would earn a total of 10,013 from holding The Travelers Companies or generate 61.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 82.66% |
| Values | Daily Returns |
The Travelers Companies vs. ITC HLDGS P
Performance |
| Timeline |
| The Travelers Companies |
| ITC HLDGS P |
Travelers Companies and 465685AK1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 465685AK1
The main advantage of trading using opposite Travelers Companies and 465685AK1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 465685AK1 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 465685AK1 will offset losses from the drop in 465685AK1's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| 465685AK1 vs. Meli Hotels International | 465685AK1 vs. Shake Shack | 465685AK1 vs. Dave Busters Entertainment | 465685AK1 vs. The Wendys Co |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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