Correlation Between Travelers Companies and STORE
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By analyzing existing cross correlation between The Travelers Companies and STORE CAP P, you can compare the effects of market volatilities on Travelers Companies and STORE 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 STORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and STORE.
Diversification Opportunities for Travelers Companies and STORE
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Travelers and STORE is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and STORE CAP P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STORE CAP P 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 STORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STORE CAP P has no effect on the direction of Travelers Companies i.e., Travelers Companies and STORE go up and down completely randomly.
Pair Corralation between Travelers Companies and STORE
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.19 times more return on investment than STORE. However, Travelers Companies is 1.19 times more volatile than STORE CAP P. It trades about 0.06 of its potential returns per unit of risk. STORE CAP P is currently generating about 0.0 per unit of risk. If you would invest 18,034 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 8,570 from holding The Travelers Companies or generate 47.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 80.0% |
| Values | Daily Returns |
The Travelers Companies vs. STORE CAP P
Performance |
| Timeline |
| The Travelers Companies |
| STORE CAP P |
Travelers Companies and STORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and STORE
The main advantage of trading using opposite Travelers Companies and STORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, STORE 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 STORE will offset losses from the drop in STORE's long position.| Travelers Companies vs. Chubb | Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet |
| STORE vs. Sable Offshore Corp | STORE vs. Getty Copper | STORE vs. Nabors Industries | STORE vs. Electrovaya Common Shares |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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