Correlation Between Travelers Companies and NOMURA
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By analyzing existing cross correlation between The Travelers Companies and NOMURA HOLDINGS INC, you can compare the effects of market volatilities on Travelers Companies and NOMURA 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 NOMURA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and NOMURA.
Diversification Opportunities for Travelers Companies and NOMURA
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and NOMURA is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and NOMURA HOLDINGS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NOMURA HOLDINGS 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 NOMURA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NOMURA HOLDINGS INC has no effect on the direction of Travelers Companies i.e., Travelers Companies and NOMURA go up and down completely randomly.
Pair Corralation between Travelers Companies and NOMURA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.72 times more return on investment than NOMURA. However, The Travelers Companies is 1.4 times less risky than NOMURA. It trades about 0.33 of its potential returns per unit of risk. NOMURA HOLDINGS INC is currently generating about -0.22 per unit of risk. If you would invest 24,564 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 2,040 from holding The Travelers Companies or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
The Travelers Companies vs. NOMURA HOLDINGS INC
Performance |
| Timeline |
| The Travelers Companies |
| NOMURA HOLDINGS INC |
Travelers Companies and NOMURA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and NOMURA
The main advantage of trading using opposite Travelers Companies and NOMURA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, NOMURA 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 NOMURA will offset losses from the drop in NOMURA's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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