Correlation Between Travelers Companies and NORSK
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By analyzing existing cross correlation between The Travelers Companies and NORSK HYDRO A, you can compare the effects of market volatilities on Travelers Companies and NORSK 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 NORSK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and NORSK.
Diversification Opportunities for Travelers Companies and NORSK
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and NORSK is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and NORSK HYDRO A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORSK HYDRO A 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 NORSK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORSK HYDRO A has no effect on the direction of Travelers Companies i.e., Travelers Companies and NORSK go up and down completely randomly.
Pair Corralation between Travelers Companies and NORSK
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.15 times more return on investment than NORSK. However, Travelers Companies is 2.15 times more volatile than NORSK HYDRO A. It trades about 0.06 of its potential returns per unit of risk. NORSK HYDRO A is currently generating about -0.02 per unit of risk. If you would invest 17,960 in The Travelers Companies on August 25, 2024 and sell it today you would earn a total of 8,287 from holding The Travelers Companies or generate 46.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.56% |
| Values | Daily Returns |
The Travelers Companies vs. NORSK HYDRO A
Performance |
| Timeline |
| The Travelers Companies |
| NORSK HYDRO A |
Travelers Companies and NORSK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and NORSK
The main advantage of trading using opposite Travelers Companies and NORSK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, NORSK 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 NORSK will offset losses from the drop in NORSK's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| NORSK vs. AEP TEX INC | NORSK vs. US BANK NATIONAL | NORSK vs. Dupont De Nemours | NORSK vs. The Travelers Companies |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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