Correlation Between Travelers Companies and VULCAN
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By analyzing existing cross correlation between The Travelers Companies and VULCAN MATLS 47, you can compare the effects of market volatilities on Travelers Companies and VULCAN 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 VULCAN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and VULCAN.
Diversification Opportunities for Travelers Companies and VULCAN
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Travelers and VULCAN is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and VULCAN MATLS 47 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VULCAN MATLS 47 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 VULCAN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VULCAN MATLS 47 has no effect on the direction of Travelers Companies i.e., Travelers Companies and VULCAN go up and down completely randomly.
Pair Corralation between Travelers Companies and VULCAN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 0.85 times more return on investment than VULCAN. However, The Travelers Companies is 1.17 times less risky than VULCAN. It trades about 0.34 of its potential returns per unit of risk. VULCAN MATLS 47 is currently generating about -0.07 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 2,070 from holding The Travelers Companies or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 47.62% |
| Values | Daily Returns |
The Travelers Companies vs. VULCAN MATLS 47
Performance |
| Timeline |
| The Travelers Companies |
| VULCAN MATLS 47 |
Travelers Companies and VULCAN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and VULCAN
The main advantage of trading using opposite Travelers Companies and VULCAN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, VULCAN 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 VULCAN will offset losses from the drop in VULCAN'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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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