Correlation Between Travelers Companies and STANLN
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By analyzing existing cross correlation between The Travelers Companies and STANLN 32 17 APR 25, you can compare the effects of market volatilities on Travelers Companies and STANLN 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 STANLN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and STANLN.
Diversification Opportunities for Travelers Companies and STANLN
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and STANLN is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and STANLN 32 17 APR 25 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STANLN 32 17 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 STANLN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STANLN 32 17 has no effect on the direction of Travelers Companies i.e., Travelers Companies and STANLN go up and down completely randomly.
Pair Corralation between Travelers Companies and STANLN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.58 times more return on investment than STANLN. However, Travelers Companies is 4.58 times more volatile than STANLN 32 17 APR 25. It trades about 0.05 of its potential returns per unit of risk. STANLN 32 17 APR 25 is currently generating about 0.08 per unit of risk. If you would invest 18,192 in The Travelers Companies on September 13, 2024 and sell it today you would earn a total of 6,322 from holding The Travelers Companies or generate 34.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 16.8% |
| Values | Daily Returns |
The Travelers Companies vs. STANLN 32 17 APR 25
Performance |
| Timeline |
| The Travelers Companies |
| STANLN 32 17 |
Travelers Companies and STANLN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and STANLN
The main advantage of trading using opposite Travelers Companies and STANLN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, STANLN 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 STANLN will offset losses from the drop in STANLN's long position.| Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| STANLN vs. Meiwu Technology Co | STANLN vs. 17 Education Technology | STANLN vs. Afya | STANLN vs. Skillful Craftsman Education |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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