Correlation Between Travelers Companies and PETROLEOS
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By analyzing existing cross correlation between The Travelers Companies and PETROLEOS MEXICANOS 65, you can compare the effects of market volatilities on Travelers Companies and PETROLEOS 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 PETROLEOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and PETROLEOS.
Diversification Opportunities for Travelers Companies and PETROLEOS
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and PETROLEOS is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and PETROLEOS MEXICANOS 65 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PETROLEOS MEXICANOS 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 PETROLEOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PETROLEOS MEXICANOS has no effect on the direction of Travelers Companies i.e., Travelers Companies and PETROLEOS go up and down completely randomly.
Pair Corralation between Travelers Companies and PETROLEOS
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.41 times more return on investment than PETROLEOS. However, The Travelers Companies is 2.46 times less risky than PETROLEOS. It trades about -0.15 of its potential returns per unit of risk. PETROLEOS MEXICANOS 65 is currently generating about -0.24 per unit of risk. If you would invest 25,728 in The Travelers Companies on September 12, 2024 and sell it today you would lose (963.00) from holding The Travelers Companies or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. PETROLEOS MEXICANOS 65
Performance |
| Timeline |
| The Travelers Companies |
| PETROLEOS MEXICANOS |
Travelers Companies and PETROLEOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and PETROLEOS
The main advantage of trading using opposite Travelers Companies and PETROLEOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, PETROLEOS 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 PETROLEOS will offset losses from the drop in PETROLEOS's long position.| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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