Correlation Between Travelers Companies and 55336VAM2
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By analyzing existing cross correlation between The Travelers Companies and MPLX LP 45, you can compare the effects of market volatilities on Travelers Companies and 55336VAM2 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 55336VAM2. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 55336VAM2.
Diversification Opportunities for Travelers Companies and 55336VAM2
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 55336VAM2 is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and MPLX LP 45 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MPLX LP 45 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 55336VAM2. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MPLX LP 45 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 55336VAM2 go up and down completely randomly.
Pair Corralation between Travelers Companies and 55336VAM2
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.05 times more return on investment than 55336VAM2. However, Travelers Companies is 2.05 times more volatile than MPLX LP 45. It trades about 0.11 of its potential returns per unit of risk. MPLX LP 45 is currently generating about 0.01 per unit of risk. If you would invest 17,984 in The Travelers Companies on September 5, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
The Travelers Companies vs. MPLX LP 45
Performance |
| Timeline |
| The Travelers Companies |
| MPLX LP 45 |
Travelers Companies and 55336VAM2 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 55336VAM2
The main advantage of trading using opposite Travelers Companies and 55336VAM2 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 55336VAM2 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 55336VAM2 will offset losses from the drop in 55336VAM2's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| 55336VAM2 vs. United Guardian | 55336VAM2 vs. Comstock Holding Companies | 55336VAM2 vs. Old Republic International | 55336VAM2 vs. PennantPark Investment |
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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