Correlation Between Travelers Companies and TRANSCANADA
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By analyzing existing cross correlation between The Travelers Companies and TRANSCANADA PIPELINES LTD, you can compare the effects of market volatilities on Travelers Companies and TRANSCANADA 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 TRANSCANADA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and TRANSCANADA.
Diversification Opportunities for Travelers Companies and TRANSCANADA
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and TRANSCANADA is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and TRANSCANADA PIPELINES LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCANADA PIPELINES LTD 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 TRANSCANADA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCANADA PIPELINES LTD has no effect on the direction of Travelers Companies i.e., Travelers Companies and TRANSCANADA go up and down completely randomly.
Pair Corralation between Travelers Companies and TRANSCANADA
Considering the 90-day investment horizon The Travelers Companies is expected to generate 1.5 times more return on investment than TRANSCANADA. However, Travelers Companies is 1.5 times more volatile than TRANSCANADA PIPELINES LTD. It trades about 0.34 of its potential returns per unit of risk. TRANSCANADA PIPELINES LTD is currently generating about -0.15 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 2,070 from holding The Travelers Companies or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 52.38% |
| Values | Daily Returns |
The Travelers Companies vs. TRANSCANADA PIPELINES LTD
Performance |
| Timeline |
| The Travelers Companies |
| TRANSCANADA PIPELINES LTD |
Travelers Companies and TRANSCANADA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and TRANSCANADA
The main advantage of trading using opposite Travelers Companies and TRANSCANADA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, TRANSCANADA 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 TRANSCANADA will offset losses from the drop in TRANSCANADA's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
| TRANSCANADA vs. The Travelers Companies | TRANSCANADA vs. GE Aerospace | TRANSCANADA vs. Walmart | TRANSCANADA vs. Pfizer Inc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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