Correlation Between Travelers Companies and Kaiser
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By analyzing existing cross correlation between The Travelers Companies and Kaiser Permanente, you can compare the effects of market volatilities on Travelers Companies and Kaiser 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 Kaiser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Kaiser.
Diversification Opportunities for Travelers Companies and Kaiser
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and Kaiser is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Kaiser Permanente in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaiser Permanente 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 Kaiser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaiser Permanente has no effect on the direction of Travelers Companies i.e., Travelers Companies and Kaiser go up and down completely randomly.
Pair Corralation between Travelers Companies and Kaiser
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.72 times more return on investment than Kaiser. However, The Travelers Companies is 1.39 times less risky than Kaiser. It trades about 0.33 of its potential returns per unit of risk. Kaiser Permanente is currently generating about -0.06 per unit of risk. If you would invest 24,564 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 2,040 from holding The Travelers Companies or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Travelers Companies vs. Kaiser Permanente
Performance |
| Timeline |
| The Travelers Companies |
| Kaiser Permanente |
Travelers Companies and Kaiser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Kaiser
The main advantage of trading using opposite Travelers Companies and Kaiser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Kaiser 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 Kaiser will offset losses from the drop in Kaiser'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 |
| Kaiser vs. AEP TEX INC | Kaiser vs. US BANK NATIONAL | Kaiser vs. FactSet Research Systems | Kaiser vs. Aurora Innovation |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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