Correlation Between Travelers Companies and 842400HQ9
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Travelers Companies and EIX 47 01 JUN 27, you can compare the effects of market volatilities on Travelers Companies and 842400HQ9 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 842400HQ9. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 842400HQ9.
Diversification Opportunities for Travelers Companies and 842400HQ9
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and 842400HQ9 is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and EIX 47 01 JUN 27 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 47 01 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 842400HQ9. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 47 01 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 842400HQ9 go up and down completely randomly.
Pair Corralation between Travelers Companies and 842400HQ9
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.89 times more return on investment than 842400HQ9. However, Travelers Companies is 4.89 times more volatile than EIX 47 01 JUN 27. It trades about 0.11 of its potential returns per unit of risk. EIX 47 01 JUN 27 is currently generating about 0.02 per unit of risk. If you would invest 17,984 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
The Travelers Companies vs. EIX 47 01 JUN 27
Performance |
| Timeline |
| The Travelers Companies |
| EIX 47 01 |
Travelers Companies and 842400HQ9 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 842400HQ9
The main advantage of trading using opposite Travelers Companies and 842400HQ9 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 842400HQ9 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 842400HQ9 will offset losses from the drop in 842400HQ9's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| 842400HQ9 vs. Nascent Wine | 842400HQ9 vs. China Tontine Wines | 842400HQ9 vs. National Beverage Corp | 842400HQ9 vs. Empresa Distribuidora y |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |