Correlation Between Travelers Companies and PHILIP
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By analyzing existing cross correlation between The Travelers Companies and PHILIP MORRIS INTL, you can compare the effects of market volatilities on Travelers Companies and PHILIP 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 PHILIP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and PHILIP.
Diversification Opportunities for Travelers Companies and PHILIP
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and PHILIP is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and PHILIP MORRIS INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHILIP MORRIS INTL 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 PHILIP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHILIP MORRIS INTL has no effect on the direction of Travelers Companies i.e., Travelers Companies and PHILIP go up and down completely randomly.
Pair Corralation between Travelers Companies and PHILIP
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.69 times more return on investment than PHILIP. However, Travelers Companies is 1.69 times more volatile than PHILIP MORRIS INTL. It trades about 0.05 of its potential returns per unit of risk. PHILIP MORRIS INTL is currently generating about -0.05 per unit of risk. If you would invest 23,313 in The Travelers Companies on September 12, 2024 and sell it today you would earn a total of 1,204 from holding The Travelers Companies or generate 5.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 96.88% |
| Values | Daily Returns |
The Travelers Companies vs. PHILIP MORRIS INTL
Performance |
| Timeline |
| The Travelers Companies |
| PHILIP MORRIS INTL |
Travelers Companies and PHILIP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and PHILIP
The main advantage of trading using opposite Travelers Companies and PHILIP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, PHILIP 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 PHILIP will offset losses from the drop in PHILIP's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
| PHILIP vs. Funko Inc | PHILIP vs. United Parks Resorts | PHILIP vs. Life Time Group | PHILIP vs. Artisan Partners Asset |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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