Correlation Between Travelers Companies and Occidental
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Travelers Companies and Occidental Petroleum 795, you can compare the effects of market volatilities on Travelers Companies and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Occidental.
Diversification Opportunities for Travelers Companies and Occidental
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and Occidental is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Occidental Petroleum 795 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 795 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum 795 has no effect on the direction of Travelers Companies i.e., Travelers Companies and Occidental go up and down completely randomly.
Pair Corralation between Travelers Companies and Occidental
Considering the 90-day investment horizon Travelers Companies is expected to generate 24.08 times less return on investment than Occidental. But when comparing it to its historical volatility, The Travelers Companies is 34.97 times less risky than Occidental. It trades about 0.06 of its potential returns per unit of risk. Occidental Petroleum 795 is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 11,025 in Occidental Petroleum 795 on September 5, 2024 and sell it today you would earn a total of 111.00 from holding Occidental Petroleum 795 or generate 1.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.26% |
| Values | Daily Returns |
The Travelers Companies vs. Occidental Petroleum 795
Performance |
| Timeline |
| The Travelers Companies |
| Occidental Petroleum 795 |
Travelers Companies and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Occidental
The main advantage of trading using opposite Travelers Companies and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| Occidental vs. Saia Inc | Occidental vs. Mesa Air Group | Occidental vs. Lindblad Expeditions Holdings | Occidental vs. Verra Mobility Corp |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |