Correlation Between Travelers Companies and 88579YBK6
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By analyzing existing cross correlation between The Travelers Companies and 3M CO, you can compare the effects of market volatilities on Travelers Companies and 88579YBK6 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 88579YBK6. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 88579YBK6.
Diversification Opportunities for Travelers Companies and 88579YBK6
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and 88579YBK6 is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and 3M CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 88579YBK6 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 88579YBK6. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 88579YBK6 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 88579YBK6 go up and down completely randomly.
Pair Corralation between Travelers Companies and 88579YBK6
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the 88579YBK6. But the stock apears to be less risky and, when comparing its historical volatility, The Travelers Companies is 1.9 times less risky than 88579YBK6. The stock trades about -0.15 of its potential returns per unit of risk. The 3M CO is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 7,049 in 3M CO on September 12, 2024 and sell it today you would earn a total of 391.00 from holding 3M CO or generate 5.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 86.36% |
| Values | Daily Returns |
The Travelers Companies vs. 3M CO
Performance |
| Timeline |
| The Travelers Companies |
| 88579YBK6 |
Travelers Companies and 88579YBK6 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 88579YBK6
The main advantage of trading using opposite Travelers Companies and 88579YBK6 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 88579YBK6 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 88579YBK6 will offset losses from the drop in 88579YBK6's long position.| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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