Correlation Between ASTRAZENECA and Travelers Companies
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By analyzing existing cross correlation between ASTRAZENECA PLC 4375 and The Travelers Companies, you can compare the effects of market volatilities on ASTRAZENECA 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 ASTRAZENECA with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASTRAZENECA and Travelers Companies.
Diversification Opportunities for ASTRAZENECA and Travelers Companies
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ASTRAZENECA and Travelers is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ASTRAZENECA PLC 4375 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 ASTRAZENECA 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 ASTRAZENECA PLC 4375 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 ASTRAZENECA i.e., ASTRAZENECA and Travelers Companies go up and down completely randomly.
Pair Corralation between ASTRAZENECA and Travelers Companies
Assuming the 90 days trading horizon ASTRAZENECA PLC 4375 is expected to generate 62.03 times more return on investment than Travelers Companies. However, ASTRAZENECA is 62.03 times more volatile than The Travelers Companies. It trades about 0.07 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.09 per unit of risk. If you would invest 9,146 in ASTRAZENECA PLC 4375 on September 4, 2024 and sell it today you would lose (283.00) from holding ASTRAZENECA PLC 4375 or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 77.48% |
| Values | Daily Returns |
ASTRAZENECA PLC 4375 vs. The Travelers Companies
Performance |
| Timeline |
| ASTRAZENECA PLC 4375 |
| The Travelers Companies |
ASTRAZENECA and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ASTRAZENECA and Travelers Companies
The main advantage of trading using opposite ASTRAZENECA and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ASTRAZENECA 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.| ASTRAZENECA vs. Everus Construction Group | ASTRAZENECA vs. Emerson Electric | ASTRAZENECA vs. MACOM Technology Solutions | ASTRAZENECA vs. Skyline |
| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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