Correlation Between 644239AY1 and Travelers Companies
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By analyzing existing cross correlation between NEW ENGLAND TEL and The Travelers Companies, you can compare the effects of market volatilities on 644239AY1 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 644239AY1 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 644239AY1 and Travelers Companies.
Diversification Opportunities for 644239AY1 and Travelers Companies
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between 644239AY1 and Travelers is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding NEW ENGLAND TEL 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 644239AY1 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 NEW ENGLAND TEL 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 644239AY1 i.e., 644239AY1 and Travelers Companies go up and down completely randomly.
Pair Corralation between 644239AY1 and Travelers Companies
Assuming the 90 days trading horizon 644239AY1 is expected to generate 1.22 times less return on investment than Travelers Companies. But when comparing it to its historical volatility, NEW ENGLAND TEL is 1.04 times less risky than Travelers Companies. It trades about 0.29 of its potential returns per unit of risk. 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 Together |
| Strength | Insignificant |
| Accuracy | 57.14% |
| Values | Daily Returns |
NEW ENGLAND TEL vs. The Travelers Companies
Performance |
| Timeline |
| NEW ENGLAND TEL |
| The Travelers Companies |
644239AY1 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 644239AY1 and Travelers Companies
The main advantage of trading using opposite 644239AY1 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 644239AY1 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.| 644239AY1 vs. The Travelers Companies | 644239AY1 vs. GE Aerospace | 644239AY1 vs. Walmart | 644239AY1 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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