Correlation Between 36168QAF1 and Travelers Companies
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By analyzing existing cross correlation between GFL Environmental 5125 and The Travelers Companies, you can compare the effects of market volatilities on 36168QAF1 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 36168QAF1 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 36168QAF1 and Travelers Companies.
Diversification Opportunities for 36168QAF1 and Travelers Companies
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 36168QAF1 and Travelers is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding GFL Environmental 5125 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 36168QAF1 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 GFL Environmental 5125 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 36168QAF1 i.e., 36168QAF1 and Travelers Companies go up and down completely randomly.
Pair Corralation between 36168QAF1 and Travelers Companies
Assuming the 90 days trading horizon GFL Environmental 5125 is expected to under-perform the Travelers Companies. But the bond apears to be less risky and, when comparing its historical volatility, GFL Environmental 5125 is 5.06 times less risky than Travelers Companies. The bond trades about -0.11 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 | Very Weak |
| Accuracy | 82.81% |
| Values | Daily Returns |
GFL Environmental 5125 vs. The Travelers Companies
Performance |
| Timeline |
| GFL Environmental 5125 |
| The Travelers Companies |
36168QAF1 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 36168QAF1 and Travelers Companies
The main advantage of trading using opposite 36168QAF1 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 36168QAF1 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.| 36168QAF1 vs. The Travelers Companies | 36168QAF1 vs. GE Aerospace | 36168QAF1 vs. Walmart | 36168QAF1 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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