Correlation Between Travelers Companies and 552953CD1
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Travelers Companies and MGM Resorts International, you can compare the effects of market volatilities on Travelers Companies and 552953CD1 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 552953CD1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 552953CD1.
Diversification Opportunities for Travelers Companies and 552953CD1
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 552953CD1 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and MGM Resorts International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MGM Resorts International 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 552953CD1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MGM Resorts International has no effect on the direction of Travelers Companies i.e., Travelers Companies and 552953CD1 go up and down completely randomly.
Pair Corralation between Travelers Companies and 552953CD1
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the 552953CD1. In addition to that, Travelers Companies is 1.55 times more volatile than MGM Resorts International. It trades about -0.18 of its total potential returns per unit of risk. MGM Resorts International is currently generating about -0.2 per unit of volatility. If you would invest 9,925 in MGM Resorts International on September 13, 2024 and sell it today you would lose (300.00) from holding MGM Resorts International or give up 3.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
The Travelers Companies vs. MGM Resorts International
Performance |
| Timeline |
| The Travelers Companies |
| MGM Resorts International |
Travelers Companies and 552953CD1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 552953CD1
The main advantage of trading using opposite Travelers Companies and 552953CD1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 552953CD1 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 552953CD1 will offset losses from the drop in 552953CD1's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| 552953CD1 vs. Kandi Technologies Group | 552953CD1 vs. Reservoir Media | 552953CD1 vs. Shake Shack | 552953CD1 vs. Meli Hotels International |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |