Correlation Between Travelers Companies and PACIFICORP
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By analyzing existing cross correlation between The Travelers Companies and PACIFICORP 635 percent, you can compare the effects of market volatilities on Travelers Companies and PACIFICORP 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 PACIFICORP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and PACIFICORP.
Diversification Opportunities for Travelers Companies and PACIFICORP
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and PACIFICORP is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and PACIFICORP 635 percent in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFICORP 635 percent 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 PACIFICORP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFICORP 635 percent has no effect on the direction of Travelers Companies i.e., Travelers Companies and PACIFICORP go up and down completely randomly.
Pair Corralation between Travelers Companies and PACIFICORP
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.97 times more return on investment than PACIFICORP. However, The Travelers Companies is 1.03 times less risky than PACIFICORP. It trades about 0.1 of its potential returns per unit of risk. PACIFICORP 635 percent is currently generating about 0.01 per unit of risk. If you would invest 17,049 in The Travelers Companies on August 31, 2024 and sell it today you would earn a total of 9,555 from holding The Travelers Companies or generate 56.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 88.77% |
| Values | Daily Returns |
The Travelers Companies vs. PACIFICORP 635 percent
Performance |
| Timeline |
| The Travelers Companies |
| PACIFICORP 635 percent |
Travelers Companies and PACIFICORP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and PACIFICORP
The main advantage of trading using opposite Travelers Companies and PACIFICORP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, PACIFICORP 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 PACIFICORP will offset losses from the drop in PACIFICORP's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. The Allstate | Travelers Companies vs. CNA Financial |
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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 CEOs Directory module to screen CEOs from public companies around the world.
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