Correlation Between MCCORMICK and Travelers Companies
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By analyzing existing cross correlation between MCCORMICK INC 325 and The Travelers Companies, you can compare the effects of market volatilities on MCCORMICK 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 MCCORMICK with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of MCCORMICK and Travelers Companies.
Diversification Opportunities for MCCORMICK and Travelers Companies
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MCCORMICK and Travelers is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MCCORMICK INC 325 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 MCCORMICK 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 MCCORMICK INC 325 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 MCCORMICK i.e., MCCORMICK and Travelers Companies go up and down completely randomly.
Pair Corralation between MCCORMICK and Travelers Companies
Assuming the 90 days trading horizon MCCORMICK is expected to generate 140.4 times less return on investment than Travelers Companies. But when comparing it to its historical volatility, MCCORMICK INC 325 is 2.61 times less risky than Travelers Companies. It trades about 0.0 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 18,192 in The Travelers Companies on September 13, 2024 and sell it today you would earn a total of 6,322 from holding The Travelers Companies or generate 34.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 72.67% |
| Values | Daily Returns |
MCCORMICK INC 325 vs. The Travelers Companies
Performance |
| Timeline |
| MCCORMICK INC 325 |
| The Travelers Companies |
MCCORMICK and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MCCORMICK and Travelers Companies
The main advantage of trading using opposite MCCORMICK and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MCCORMICK 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.| MCCORMICK vs. Marfrig Global Foods | MCCORMICK vs. NH Foods Ltd | MCCORMICK vs. Tencent Music Entertainment | MCCORMICK vs. Vestis |
| Travelers Companies vs. Chubb | Travelers Companies vs. W R Berkley | Travelers Companies vs. The Allstate | Travelers Companies vs. Markel |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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