Correlation Between Travelers Companies and PRIME
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By analyzing existing cross correlation between The Travelers Companies and PRIME SEC SVCS, you can compare the effects of market volatilities on Travelers Companies and PRIME 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 PRIME. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and PRIME.
Diversification Opportunities for Travelers Companies and PRIME
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and PRIME is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and PRIME SEC SVCS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PRIME SEC SVCS 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 PRIME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PRIME SEC SVCS has no effect on the direction of Travelers Companies i.e., Travelers Companies and PRIME go up and down completely randomly.
Pair Corralation between Travelers Companies and PRIME
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.62 times more return on investment than PRIME. However, Travelers Companies is 1.62 times more volatile than PRIME SEC SVCS. It trades about 0.32 of its potential returns per unit of risk. PRIME SEC SVCS is currently generating about -0.22 per unit of risk. If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
The Travelers Companies vs. PRIME SEC SVCS
Performance |
| Timeline |
| The Travelers Companies |
| PRIME SEC SVCS |
Travelers Companies and PRIME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and PRIME
The main advantage of trading using opposite Travelers Companies and PRIME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, PRIME 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 PRIME will offset losses from the drop in PRIME's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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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