Correlation Between ALTRIA and Travelers Companies
Specify exactly 2 symbols:
By analyzing existing cross correlation between ALTRIA GROUP INC and The Travelers Companies, you can compare the effects of market volatilities on ALTRIA and Travelers Companies 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 ALTRIA with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALTRIA and Travelers Companies.
Diversification Opportunities for ALTRIA and Travelers Companies
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ALTRIA and Travelers is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding ALTRIA GROUP INC and The Travelers Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Travelers Companies and ALTRIA 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 ALTRIA GROUP INC are associated (or correlated) with Travelers Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Travelers Companies has no effect on the direction of ALTRIA i.e., ALTRIA and Travelers Companies go up and down completely randomly.
Pair Corralation between ALTRIA and Travelers Companies
Assuming the 90 days trading horizon ALTRIA GROUP INC is expected to under-perform the Travelers Companies. In addition to that, ALTRIA is 1.27 times more volatile than The Travelers Companies. It trades about -0.16 of its total potential returns per unit of risk. The Travelers Companies is currently generating about -0.15 per unit of volatility. If you would invest 25,728 in The Travelers Companies on September 12, 2024 and sell it today you would lose (963.00) from holding The Travelers Companies or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
ALTRIA GROUP INC vs. The Travelers Companies
Performance |
| Timeline |
| ALTRIA GROUP INC |
| The Travelers Companies |
ALTRIA and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ALTRIA and Travelers Companies
The main advantage of trading using opposite ALTRIA and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALTRIA position performs unexpectedly, Travelers Companies 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 Companies will offset losses from the drop in Travelers Companies' long position.| ALTRIA vs. Simon Property Group | ALTRIA vs. WPP PLC ADR | ALTRIA vs. National Vision Holdings | ALTRIA vs. CarsalesCom Ltd ADR |
| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |