Correlation Between Travelers Companies and 902133AY3
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By analyzing existing cross correlation between The Travelers Companies and TEL 25 04 FEB 32, you can compare the effects of market volatilities on Travelers Companies and 902133AY3 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 902133AY3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 902133AY3.
Diversification Opportunities for Travelers Companies and 902133AY3
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and 902133AY3 is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and TEL 25 04 FEB 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TEL 25 04 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 902133AY3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TEL 25 04 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 902133AY3 go up and down completely randomly.
Pair Corralation between Travelers Companies and 902133AY3
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.77 times more return on investment than 902133AY3. However, The Travelers Companies is 1.3 times less risky than 902133AY3. It trades about 0.32 of its potential returns per unit of risk. TEL 25 04 FEB 32 is currently generating about -0.24 per unit of risk. If you would invest 24,594 in The Travelers Companies on September 1, 2024 and sell it today you would earn a total of 2,010 from holding The Travelers Companies or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 80.95% |
| Values | Daily Returns |
The Travelers Companies vs. TEL 25 04 FEB 32
Performance |
| Timeline |
| The Travelers Companies |
| TEL 25 04 |
Travelers Companies and 902133AY3 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 902133AY3
The main advantage of trading using opposite Travelers Companies and 902133AY3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 902133AY3 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 902133AY3 will offset losses from the drop in 902133AY3's long position.| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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