Correlation Between 55336VAM2 and Travelers Companies
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By analyzing existing cross correlation between MPLX LP 45 and The Travelers Companies, you can compare the effects of market volatilities on 55336VAM2 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 55336VAM2 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 55336VAM2 and Travelers Companies.
Diversification Opportunities for 55336VAM2 and Travelers Companies
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 55336VAM2 and Travelers is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding MPLX LP 45 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 55336VAM2 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 MPLX LP 45 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 55336VAM2 i.e., 55336VAM2 and Travelers Companies go up and down completely randomly.
Pair Corralation between 55336VAM2 and Travelers Companies
Assuming the 90 days trading horizon 55336VAM2 is expected to generate 17.68 times less return on investment than Travelers Companies. But when comparing it to its historical volatility, MPLX LP 45 is 2.06 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 0.11 of returns per unit of risk over similar time horizon. If you would invest 17,984 in The Travelers Companies on September 4, 2024 and sell it today you would earn a total of 8,075 from holding The Travelers Companies or generate 44.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
MPLX LP 45 vs. The Travelers Companies
Performance |
| Timeline |
| MPLX LP 45 |
| The Travelers Companies |
55336VAM2 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 55336VAM2 and Travelers Companies
The main advantage of trading using opposite 55336VAM2 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 55336VAM2 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.| 55336VAM2 vs. The Travelers Companies | 55336VAM2 vs. GE Aerospace | 55336VAM2 vs. Walmart | 55336VAM2 vs. Pfizer 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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