Correlation Between Travelers Companies and UOBSP
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By analyzing existing cross correlation between The Travelers Companies and UOBSP 3863 07 OCT 32, you can compare the effects of market volatilities on Travelers Companies and UOBSP 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 UOBSP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and UOBSP.
Diversification Opportunities for Travelers Companies and UOBSP
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and UOBSP is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and UOBSP 3863 07 OCT 32 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UOBSP 3863 07 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 UOBSP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UOBSP 3863 07 has no effect on the direction of Travelers Companies i.e., Travelers Companies and UOBSP go up and down completely randomly.
Pair Corralation between Travelers Companies and UOBSP
Considering the 90-day investment horizon The Travelers Companies is expected to generate 2.65 times more return on investment than UOBSP. However, Travelers Companies is 2.65 times more volatile than UOBSP 3863 07 OCT 32. It trades about 0.11 of its potential returns per unit of risk. UOBSP 3863 07 OCT 32 is currently generating about 0.14 per unit of risk. If you would invest 15,686 in The Travelers Companies on September 12, 2024 and sell it today you would earn a total of 9,079 from holding The Travelers Companies or generate 57.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 18.43% |
| Values | Daily Returns |
The Travelers Companies vs. UOBSP 3863 07 OCT 32
Performance |
| Timeline |
| The Travelers Companies |
| UOBSP 3863 07 |
Travelers Companies and UOBSP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and UOBSP
The main advantage of trading using opposite Travelers Companies and UOBSP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, UOBSP 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 UOBSP will offset losses from the drop in UOBSP'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 |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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