Correlation Between FEDEX and Travelers Companies
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By analyzing existing cross correlation between FEDEX P 42 and The Travelers Companies, you can compare the effects of market volatilities on FEDEX 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 FEDEX with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEDEX and Travelers Companies.
Diversification Opportunities for FEDEX and Travelers Companies
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEDEX and Travelers is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding FEDEX P 42 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 FEDEX 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 FEDEX P 42 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 FEDEX i.e., FEDEX and Travelers Companies go up and down completely randomly.
Pair Corralation between FEDEX and Travelers Companies
Assuming the 90 days trading horizon FEDEX P 42 is expected to under-perform the Travelers Companies. But the bond apears to be less risky and, when comparing its historical volatility, FEDEX P 42 is 1.76 times less risky than Travelers Companies. The bond trades about -0.17 of its potential returns per unit of risk. The The Travelers Companies is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 24,281 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 2,070 from holding The Travelers Companies or generate 8.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
FEDEX P 42 vs. The Travelers Companies
Performance |
| Timeline |
| FEDEX P 42 |
| The Travelers Companies |
FEDEX and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEDEX and Travelers Companies
The main advantage of trading using opposite FEDEX and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEDEX 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.| FEDEX vs. Paltalk | FEDEX vs. CapitaLand Investment Limited | FEDEX vs. Uber Technologies | FEDEX vs. Qualys Inc |
| 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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