Correlation Between CVR Partners and TRAVELERS
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By analyzing existing cross correlation between CVR Partners LP and TRAVELERS INS GROUP, you can compare the effects of market volatilities on CVR Partners and TRAVELERS 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 CVR Partners with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Partners and TRAVELERS.
Diversification Opportunities for CVR Partners and TRAVELERS
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVR and TRAVELERS is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding CVR Partners LP and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP and CVR Partners 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 CVR Partners LP are associated (or correlated) with TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of CVR Partners i.e., CVR Partners and TRAVELERS go up and down completely randomly.
Pair Corralation between CVR Partners and TRAVELERS
Considering the 90-day investment horizon CVR Partners LP is expected to generate 2.5 times more return on investment than TRAVELERS. However, CVR Partners is 2.5 times more volatile than TRAVELERS INS GROUP. It trades about 0.19 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.11 per unit of risk. If you would invest 7,702 in CVR Partners LP on November 3, 2024 and sell it today you would earn a total of 491.86 from holding CVR Partners LP or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Partners LP vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| CVR Partners LP |
| TRAVELERS INS GROUP |
CVR Partners and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Partners and TRAVELERS
The main advantage of trading using opposite CVR Partners and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Partners position performs unexpectedly, TRAVELERS 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 TRAVELERS will offset losses from the drop in TRAVELERS's long position.| CVR Partners vs. CF Industries Holdings | CVR Partners vs. The Mosaic | CVR Partners vs. American Vanguard | CVR Partners vs. ICL Israel Chemicals |
| TRAVELERS vs. Merit Medical Systems | TRAVELERS vs. Alvotech | TRAVELERS vs. Viemed Healthcare | TRAVELERS vs. Xtant Medical Holdings |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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