Correlation Between Travelers Companies and SUNOCO
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By analyzing existing cross correlation between The Travelers Companies and SUNOCO LOGISTICS PARTNERS, you can compare the effects of market volatilities on Travelers Companies and SUNOCO 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 SUNOCO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and SUNOCO.
Diversification Opportunities for Travelers Companies and SUNOCO
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and SUNOCO is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and SUNOCO LOGISTICS PARTNERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUNOCO LOGISTICS 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 SUNOCO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUNOCO LOGISTICS PARTNERS has no effect on the direction of Travelers Companies i.e., Travelers Companies and SUNOCO go up and down completely randomly.
Pair Corralation between Travelers Companies and SUNOCO
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.27 times more return on investment than SUNOCO. However, Travelers Companies is 1.27 times more volatile than SUNOCO LOGISTICS PARTNERS. It trades about 0.28 of its potential returns per unit of risk. SUNOCO LOGISTICS PARTNERS is currently generating about 0.03 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 5, 2024 and sell it today you would earn a total of 1,778 from holding The Travelers Companies or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 68.18% |
| Values | Daily Returns |
The Travelers Companies vs. SUNOCO LOGISTICS PARTNERS
Performance |
| Timeline |
| The Travelers Companies |
| SUNOCO LOGISTICS PARTNERS |
Travelers Companies and SUNOCO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and SUNOCO
The main advantage of trading using opposite Travelers Companies and SUNOCO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, SUNOCO 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 SUNOCO will offset losses from the drop in SUNOCO's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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