Correlation Between 406216BG5 and Travelers Companies
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By analyzing existing cross correlation between HALLIBURTON 38 percent and The Travelers Companies, you can compare the effects of market volatilities on 406216BG5 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 406216BG5 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 406216BG5 and Travelers Companies.
Diversification Opportunities for 406216BG5 and Travelers Companies
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 406216BG5 and Travelers is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding HALLIBURTON 38 percent 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 406216BG5 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 HALLIBURTON 38 percent 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 406216BG5 i.e., 406216BG5 and Travelers Companies go up and down completely randomly.
Pair Corralation between 406216BG5 and Travelers Companies
Assuming the 90 days trading horizon HALLIBURTON 38 percent is expected to generate 0.34 times more return on investment than Travelers Companies. However, HALLIBURTON 38 percent is 2.91 times less risky than Travelers Companies. It trades about -0.13 of its potential returns per unit of risk. The Travelers Companies is currently generating about -0.15 per unit of risk. If you would invest 9,911 in HALLIBURTON 38 percent on September 12, 2024 and sell it today you would lose (99.00) from holding HALLIBURTON 38 percent or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
HALLIBURTON 38 percent vs. The Travelers Companies
Performance |
| Timeline |
| HALLIBURTON 38 percent |
| The Travelers Companies |
406216BG5 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 406216BG5 and Travelers Companies
The main advantage of trading using opposite 406216BG5 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 406216BG5 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.| 406216BG5 vs. Cracker Barrel Old | 406216BG5 vs. Beauty Health Co | 406216BG5 vs. European Wax Center | 406216BG5 vs. RCI Hospitality Holdings |
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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 Stocks Directory module to find actively traded stocks across global markets.
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