Correlation Between EVERSOURCE and Travelers Companies
Specify exactly 2 symbols:
By analyzing existing cross correlation between EVERSOURCE ENERGY 33 and The Travelers Companies, you can compare the effects of market volatilities on EVERSOURCE 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 EVERSOURCE with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVERSOURCE and Travelers Companies.
Diversification Opportunities for EVERSOURCE and Travelers Companies
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EVERSOURCE and Travelers is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding EVERSOURCE ENERGY 33 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 EVERSOURCE 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 EVERSOURCE ENERGY 33 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 EVERSOURCE i.e., EVERSOURCE and Travelers Companies go up and down completely randomly.
Pair Corralation between EVERSOURCE and Travelers Companies
Assuming the 90 days trading horizon EVERSOURCE is expected to generate 10.86 times less return on investment than Travelers Companies. But when comparing it to its historical volatility, EVERSOURCE ENERGY 33 is 1.48 times less risky than Travelers Companies. It trades about 0.01 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 18,040 in The Travelers Companies on September 2, 2024 and sell it today you would earn a total of 8,564 from holding The Travelers Companies or generate 47.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 78.23% |
| Values | Daily Returns |
EVERSOURCE ENERGY 33 vs. The Travelers Companies
Performance |
| Timeline |
| EVERSOURCE ENERGY |
| The Travelers Companies |
EVERSOURCE and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVERSOURCE and Travelers Companies
The main advantage of trading using opposite EVERSOURCE and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVERSOURCE 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.| EVERSOURCE vs. Analog Devices | EVERSOURCE vs. Paysafe | EVERSOURCE vs. Asure Software | EVERSOURCE vs. Turning Point Brands |
| Travelers Companies vs. Selective Insurance Group | Travelers Companies vs. Aquagold International | Travelers Companies vs. Thrivent High Yield | Travelers Companies vs. Morningstar Unconstrained Allocation |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |