Correlation Between Travelers Companies and 548661EM5
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By analyzing existing cross correlation between The Travelers Companies and LOW 5625 15 APR 53, you can compare the effects of market volatilities on Travelers Companies and 548661EM5 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 548661EM5. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 548661EM5.
Diversification Opportunities for Travelers Companies and 548661EM5
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 548661EM5 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and LOW 5625 15 APR 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOW 5625 15 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 548661EM5. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOW 5625 15 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 548661EM5 go up and down completely randomly.
Pair Corralation between Travelers Companies and 548661EM5
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the 548661EM5. But the stock apears to be less risky and, when comparing its historical volatility, The Travelers Companies is 1.13 times less risky than 548661EM5. The stock trades about -0.15 of its potential returns per unit of risk. The LOW 5625 15 APR 53 is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,913 in LOW 5625 15 APR 53 on September 12, 2024 and sell it today you would lose (28.00) from holding LOW 5625 15 APR 53 or give up 0.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
The Travelers Companies vs. LOW 5625 15 APR 53
Performance |
| Timeline |
| The Travelers Companies |
| LOW 5625 15 |
Travelers Companies and 548661EM5 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 548661EM5
The main advantage of trading using opposite Travelers Companies and 548661EM5 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 548661EM5 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 548661EM5 will offset losses from the drop in 548661EM5'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 |
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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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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