Correlation Between 00108WAF7 and TRAVELERS
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By analyzing existing cross correlation between AEP TEX INC and TRAVELERS INS GROUP, you can compare the effects of market volatilities on 00108WAF7 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 00108WAF7 with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 00108WAF7 and TRAVELERS.
Diversification Opportunities for 00108WAF7 and TRAVELERS
Good diversification
The 3 months correlation between 00108WAF7 and TRAVELERS is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding AEP TEX INC 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 00108WAF7 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 AEP TEX INC 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 00108WAF7 i.e., 00108WAF7 and TRAVELERS go up and down completely randomly.
Pair Corralation between 00108WAF7 and TRAVELERS
Assuming the 90 days trading horizon AEP TEX INC is expected to generate 5.96 times more return on investment than TRAVELERS. However, 00108WAF7 is 5.96 times more volatile than TRAVELERS INS GROUP. It trades about 0.27 of its potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about -0.18 per unit of risk. If you would invest 7,420 in AEP TEX INC on August 29, 2024 and sell it today you would earn a total of 801.00 from holding AEP TEX INC or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
AEP TEX INC vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| AEP TEX INC |
| TRAVELERS INS GROUP |
00108WAF7 and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 00108WAF7 and TRAVELERS
The main advantage of trading using opposite 00108WAF7 and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 00108WAF7 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.| 00108WAF7 vs. Bluerock Homes Trust | 00108WAF7 vs. PennantPark Floating Rate | 00108WAF7 vs. EastGroup Properties | 00108WAF7 vs. NETGEAR |
| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. Nasdaq Inc | TRAVELERS vs. Vertiv Holdings Co |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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