Correlation Between AMAZONCOM and Travelers Companies
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By analyzing existing cross correlation between AMAZONCOM INC and The Travelers Companies, you can compare the effects of market volatilities on AMAZONCOM 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 AMAZONCOM with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMAZONCOM and Travelers Companies.
Diversification Opportunities for AMAZONCOM and Travelers Companies
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between AMAZONCOM and Travelers is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding AMAZONCOM 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 AMAZONCOM 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 AMAZONCOM 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 AMAZONCOM i.e., AMAZONCOM and Travelers Companies go up and down completely randomly.
Pair Corralation between AMAZONCOM and Travelers Companies
Assuming the 90 days trading horizon AMAZONCOM INC is expected to under-perform the Travelers Companies. But the bond apears to be less risky and, when comparing its historical volatility, AMAZONCOM INC is 1.77 times less risky than Travelers Companies. The bond trades about 0.0 of its potential returns per unit of risk. The The Travelers Companies is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 20,410 in The Travelers Companies on September 12, 2024 and sell it today you would earn a total of 4,355 from holding The Travelers Companies or generate 21.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
AMAZONCOM INC vs. The Travelers Companies
Performance |
| Timeline |
| AMAZONCOM INC |
| The Travelers Companies |
AMAZONCOM and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMAZONCOM and Travelers Companies
The main advantage of trading using opposite AMAZONCOM and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMAZONCOM 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.| AMAZONCOM vs. AEP TEX INC | AMAZONCOM vs. US BANK NATIONAL | AMAZONCOM vs. Applied Blockchain | AMAZONCOM vs. BigBearai Holdings |
| 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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