Correlation Between Travelers Companies and UNION
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By analyzing existing cross correlation between The Travelers Companies and UNION PAC P, you can compare the effects of market volatilities on Travelers Companies and UNION 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 UNION. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and UNION.
Diversification Opportunities for Travelers Companies and UNION
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Travelers and UNION is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and UNION PAC P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNION PAC P 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 UNION. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNION PAC P has no effect on the direction of Travelers Companies i.e., Travelers Companies and UNION go up and down completely randomly.
Pair Corralation between Travelers Companies and UNION
Considering the 90-day investment horizon Travelers Companies is expected to generate 88.51 times less return on investment than UNION. But when comparing it to its historical volatility, The Travelers Companies is 79.26 times less risky than UNION. It trades about 0.09 of its potential returns per unit of risk. UNION PAC P is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 8,284 in UNION PAC P on September 12, 2024 and sell it today you would lose (176.00) from holding UNION PAC P or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 48.86% |
| Values | Daily Returns |
The Travelers Companies vs. UNION PAC P
Performance |
| Timeline |
| The Travelers Companies |
| UNION PAC P |
Travelers Companies and UNION Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and UNION
The main advantage of trading using opposite Travelers Companies and UNION positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, UNION 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 UNION will offset losses from the drop in UNION'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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