Correlation Between Travelers Companies and SPECTRA
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By analyzing existing cross correlation between The Travelers Companies and SPECTRA ENERGY PARTNERS, you can compare the effects of market volatilities on Travelers Companies and SPECTRA 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 SPECTRA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and SPECTRA.
Diversification Opportunities for Travelers Companies and SPECTRA
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Travelers and SPECTRA is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and SPECTRA ENERGY PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPECTRA ENERGY PARTNERS 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 SPECTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPECTRA ENERGY PARTNERS has no effect on the direction of Travelers Companies i.e., Travelers Companies and SPECTRA go up and down completely randomly.
Pair Corralation between Travelers Companies and SPECTRA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 9.56 times more return on investment than SPECTRA. However, Travelers Companies is 9.56 times more volatile than SPECTRA ENERGY PARTNERS. It trades about 0.11 of its potential returns per unit of risk. SPECTRA ENERGY PARTNERS is currently generating about 0.01 per unit of risk. If you would invest 21,370 in The Travelers Companies on August 29, 2024 and sell it today you would earn a total of 5,007 from holding The Travelers Companies or generate 23.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.4% |
| Values | Daily Returns |
The Travelers Companies vs. SPECTRA ENERGY PARTNERS
Performance |
| Timeline |
| The Travelers Companies |
| SPECTRA ENERGY PARTNERS |
Travelers Companies and SPECTRA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and SPECTRA
The main advantage of trading using opposite Travelers Companies and SPECTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, SPECTRA 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 SPECTRA will offset losses from the drop in SPECTRA's long position.| Travelers Companies vs. Fiverr International | Travelers Companies vs. Pinterest | Travelers Companies vs. Upstart Holdings | Travelers Companies vs. Fastly Inc |
| SPECTRA vs. AEP TEX INC | SPECTRA vs. US BANK NATIONAL | SPECTRA vs. Dupont De Nemours | SPECTRA vs. The Travelers Companies |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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