Correlation Between 126650DJ6 and Travelers Companies
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By analyzing existing cross correlation between CVS HEALTH P and The Travelers Companies, you can compare the effects of market volatilities on 126650DJ6 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 126650DJ6 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 126650DJ6 and Travelers Companies.
Diversification Opportunities for 126650DJ6 and Travelers Companies
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 126650DJ6 and Travelers is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding CVS HEALTH P 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 126650DJ6 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 CVS HEALTH P 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 126650DJ6 i.e., 126650DJ6 and Travelers Companies go up and down completely randomly.
Pair Corralation between 126650DJ6 and Travelers Companies
Assuming the 90 days trading horizon CVS HEALTH P is expected to under-perform the Travelers Companies. But the bond apears to be less risky and, when comparing its historical volatility, CVS HEALTH P is 4.96 times less risky than Travelers Companies. The bond trades about -0.13 of its potential returns per unit of risk. The The Travelers Companies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 22,688 in The Travelers Companies on September 3, 2024 and sell it today you would earn a total of 3,916 from holding The Travelers Companies or generate 17.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
CVS HEALTH P vs. The Travelers Companies
Performance |
| Timeline |
| CVS HEALTH P |
| The Travelers Companies |
126650DJ6 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 126650DJ6 and Travelers Companies
The main advantage of trading using opposite 126650DJ6 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 126650DJ6 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.| 126650DJ6 vs. The Travelers Companies | 126650DJ6 vs. GE Aerospace | 126650DJ6 vs. Walmart | 126650DJ6 vs. Pfizer Inc |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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