Correlation Between Travelers Companies and UNITEDHEALTH
Specify exactly 2 symbols:
By analyzing existing cross correlation between The Travelers Companies and UNITEDHEALTH GROUP INC, you can compare the effects of market volatilities on Travelers Companies and UNITEDHEALTH 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 UNITEDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and UNITEDHEALTH.
Diversification Opportunities for Travelers Companies and UNITEDHEALTH
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and UNITEDHEALTH is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and UNITEDHEALTH GROUP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNITEDHEALTH GROUP INC 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 UNITEDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNITEDHEALTH GROUP INC has no effect on the direction of Travelers Companies i.e., Travelers Companies and UNITEDHEALTH go up and down completely randomly.
Pair Corralation between Travelers Companies and UNITEDHEALTH
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.96 times more return on investment than UNITEDHEALTH. However, The Travelers Companies is 1.04 times less risky than UNITEDHEALTH. It trades about 0.4 of its potential returns per unit of risk. UNITEDHEALTH GROUP INC is currently generating about 0.28 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 2,323 from holding The Travelers Companies or generate 9.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 70.0% |
| Values | Daily Returns |
The Travelers Companies vs. UNITEDHEALTH GROUP INC
Performance |
| Timeline |
| The Travelers Companies |
| UNITEDHEALTH GROUP INC |
Travelers Companies and UNITEDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and UNITEDHEALTH
The main advantage of trading using opposite Travelers Companies and UNITEDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, UNITEDHEALTH 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 UNITEDHEALTH will offset losses from the drop in UNITEDHEALTH's long position.| Travelers Companies vs. SPACE | Travelers Companies vs. Ampleforth | Travelers Companies vs. ionet | Travelers Companies vs. KIN |
| UNITEDHEALTH vs. The Travelers Companies | UNITEDHEALTH vs. GE Aerospace | UNITEDHEALTH vs. Walmart | UNITEDHEALTH vs. Pfizer Inc |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |