Correlation Between Travelers Companies and UNITED
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By analyzing existing cross correlation between The Travelers Companies and UNITED PARCEL SERVICE, you can compare the effects of market volatilities on Travelers Companies and UNITED 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 UNITED. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and UNITED.
Diversification Opportunities for Travelers Companies and UNITED
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Travelers and UNITED is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and UNITED PARCEL SERVICE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITED PARCEL SERVICE 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 UNITED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITED PARCEL SERVICE has no effect on the direction of Travelers Companies i.e., Travelers Companies and UNITED go up and down completely randomly.
Pair Corralation between Travelers Companies and UNITED
Considering the 90-day investment horizon The Travelers Companies is expected to generate 4.06 times more return on investment than UNITED. However, Travelers Companies is 4.06 times more volatile than UNITED PARCEL SERVICE. It trades about 0.11 of its potential returns per unit of risk. UNITED PARCEL SERVICE is currently generating about 0.01 per unit of risk. If you would invest 17,984 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
The Travelers Companies vs. UNITED PARCEL SERVICE
Performance |
| Timeline |
| The Travelers Companies |
| UNITED PARCEL SERVICE |
Travelers Companies and UNITED Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and UNITED
The main advantage of trading using opposite Travelers Companies and UNITED positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, UNITED 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 UNITED will offset losses from the drop in UNITED's long position.| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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