Correlation Between Travelers Companies and TNEMAK
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By analyzing existing cross correlation between The Travelers Companies and TNEMAK 3625 28 JUN 31, you can compare the effects of market volatilities on Travelers Companies and TNEMAK 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 TNEMAK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and TNEMAK.
Diversification Opportunities for Travelers Companies and TNEMAK
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Travelers and TNEMAK is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and TNEMAK 3625 28 JUN 31 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNEMAK 3625 28 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 TNEMAK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNEMAK 3625 28 has no effect on the direction of Travelers Companies i.e., Travelers Companies and TNEMAK go up and down completely randomly.
Pair Corralation between Travelers Companies and TNEMAK
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.18 times more return on investment than TNEMAK. However, Travelers Companies is 1.18 times more volatile than TNEMAK 3625 28 JUN 31. It trades about 0.13 of its potential returns per unit of risk. TNEMAK 3625 28 JUN 31 is currently generating about 0.08 per unit of risk. If you would invest 20,648 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 5,703 from holding The Travelers Companies or generate 27.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 23.2% |
| Values | Daily Returns |
The Travelers Companies vs. TNEMAK 3625 28 JUN 31
Performance |
| Timeline |
| The Travelers Companies |
| TNEMAK 3625 28 |
Travelers Companies and TNEMAK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and TNEMAK
The main advantage of trading using opposite Travelers Companies and TNEMAK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, TNEMAK 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 TNEMAK will offset losses from the drop in TNEMAK's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
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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