Correlation Between Travelers Companies and Janus Henderson
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Janus Henderson at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Travelers Companies and Janus Henderson into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Travelers Companies and Janus Henderson Short, you can compare the effects of market volatilities on Travelers Companies and Janus Henderson 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 Janus Henderson. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Janus Henderson.
Diversification Opportunities for Travelers Companies and Janus Henderson
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Travelers and Janus is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Janus Henderson Short in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Janus Henderson Short 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 Janus Henderson. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Janus Henderson Short has no effect on the direction of Travelers Companies i.e., Travelers Companies and Janus Henderson go up and down completely randomly.
Pair Corralation between Travelers Companies and Janus Henderson
Considering the 90-day investment horizon The Travelers Companies is expected to generate 28.18 times more return on investment than Janus Henderson. However, Travelers Companies is 28.18 times more volatile than Janus Henderson Short. It trades about 0.26 of its potential returns per unit of risk. Janus Henderson Short is currently generating about 0.31 per unit of risk. If you would invest 24,867 in The Travelers Companies on August 30, 2024 and sell it today you would earn a total of 1,799 from holding The Travelers Companies or generate 7.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Janus Henderson Short
Performance |
| Timeline |
| The Travelers Companies |
| Janus Henderson Short |
Travelers Companies and Janus Henderson Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Janus Henderson
The main advantage of trading using opposite Travelers Companies and Janus Henderson positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Janus Henderson 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 Janus Henderson will offset losses from the drop in Janus Henderson's long position.| Travelers Companies vs. Axa Equitable Holdings | Travelers Companies vs. American International Group | Travelers Companies vs. Arch Capital Group | Travelers Companies vs. Sun Life Financial |
| Janus Henderson vs. Invesco Variable Rate | Janus Henderson vs. Invesco Ultra Short | Janus Henderson vs. SPDR Bloomberg Investment | Janus Henderson vs. First Trust Low |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |