Correlation Between Travelers Companies and LOWES
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By analyzing existing cross correlation between The Travelers Companies and LOWES PANIES INC, you can compare the effects of market volatilities on Travelers Companies and LOWES 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 LOWES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and LOWES.
Diversification Opportunities for Travelers Companies and LOWES
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and LOWES is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and LOWES PANIES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOWES PANIES INC 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 LOWES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOWES PANIES INC has no effect on the direction of Travelers Companies i.e., Travelers Companies and LOWES go up and down completely randomly.
Pair Corralation between Travelers Companies and LOWES
Considering the 90-day investment horizon The Travelers Companies is expected to generate 6.4 times more return on investment than LOWES. However, Travelers Companies is 6.4 times more volatile than LOWES PANIES INC. It trades about 0.06 of its potential returns per unit of risk. LOWES PANIES INC is currently generating about -0.06 per unit of risk. If you would invest 23,313 in The Travelers Companies on September 12, 2024 and sell it today you would earn a total of 1,452 from holding The Travelers Companies or generate 6.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 98.41% |
| Values | Daily Returns |
The Travelers Companies vs. LOWES PANIES INC
Performance |
| Timeline |
| The Travelers Companies |
| LOWES PANIES INC |
Travelers Companies and LOWES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and LOWES
The main advantage of trading using opposite Travelers Companies and LOWES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, LOWES 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 LOWES will offset losses from the drop in LOWES's long position.| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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