Correlation Between NUCOR and Travelers Companies
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By analyzing existing cross correlation between NUCOR P 64 and The Travelers Companies, you can compare the effects of market volatilities on NUCOR 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 NUCOR with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NUCOR and Travelers Companies.
Diversification Opportunities for NUCOR and Travelers Companies
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between NUCOR and Travelers is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding NUCOR P 64 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 NUCOR 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 NUCOR P 64 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 NUCOR i.e., NUCOR and Travelers Companies go up and down completely randomly.
Pair Corralation between NUCOR and Travelers Companies
Assuming the 90 days trading horizon NUCOR P 64 is expected to generate 2.81 times more return on investment than Travelers Companies. However, NUCOR is 2.81 times more volatile than The Travelers Companies. It trades about 0.06 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 11,109 in NUCOR P 64 on September 12, 2024 and sell it today you would earn a total of 343.00 from holding NUCOR P 64 or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
NUCOR P 64 vs. The Travelers Companies
Performance |
| Timeline |
| NUCOR P 64 |
| The Travelers Companies |
NUCOR and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NUCOR and Travelers Companies
The main advantage of trading using opposite NUCOR and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NUCOR 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.| NUCOR vs. AEP TEX INC | NUCOR vs. US BANK NATIONAL | NUCOR vs. Applied Blockchain | NUCOR vs. BigBearai Holdings |
| Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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