Correlation Between Travelers Companies and 902613AJ7
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By analyzing existing cross correlation between The Travelers Companies and UBS 4875, you can compare the effects of market volatilities on Travelers Companies and 902613AJ7 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 902613AJ7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and 902613AJ7.
Diversification Opportunities for Travelers Companies and 902613AJ7
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and 902613AJ7 is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and UBS 4875 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 902613AJ7 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 902613AJ7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 902613AJ7 has no effect on the direction of Travelers Companies i.e., Travelers Companies and 902613AJ7 go up and down completely randomly.
Pair Corralation between Travelers Companies and 902613AJ7
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.7 times more return on investment than 902613AJ7. However, The Travelers Companies is 1.43 times less risky than 902613AJ7. It trades about 0.33 of its potential returns per unit of risk. UBS 4875 is currently generating about -0.39 per unit of risk. If you would invest 24,564 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 2,040 from holding The Travelers Companies or generate 8.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 28.57% |
| Values | Daily Returns |
The Travelers Companies vs. UBS 4875
Performance |
| Timeline |
| The Travelers Companies |
| 902613AJ7 |
Travelers Companies and 902613AJ7 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and 902613AJ7
The main advantage of trading using opposite Travelers Companies and 902613AJ7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, 902613AJ7 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 902613AJ7 will offset losses from the drop in 902613AJ7'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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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