Correlation Between Travelers Companies and 842400HV8
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By analyzing existing cross correlation between The Travelers Companies and EIX 57 01 MAR 53, you can compare the effects of market volatilities on Travelers Companies and 842400HV8 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 842400HV8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 842400HV8.
Diversification Opportunities for Travelers Companies and 842400HV8
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and 842400HV8 is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and EIX 57 01 MAR 53 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EIX 57 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 842400HV8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EIX 57 01 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 842400HV8 go up and down completely randomly.
Pair Corralation between Travelers Companies and 842400HV8
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.74 times more return on investment than 842400HV8. However, The Travelers Companies is 1.35 times less risky than 842400HV8. It trades about 0.4 of its potential returns per unit of risk. EIX 57 01 MAR 53 is currently generating about 0.08 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 2,323 from holding The Travelers Companies or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.0% |
| Values | Daily Returns |
The Travelers Companies vs. EIX 57 01 MAR 53
Performance |
| Timeline |
| The Travelers Companies |
| EIX 57 01 |
Travelers Companies and 842400HV8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 842400HV8
The main advantage of trading using opposite Travelers Companies and 842400HV8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 842400HV8 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 842400HV8 will offset losses from the drop in 842400HV8's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
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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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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