Correlation Between PETROLEOS and Travelers Companies
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By analyzing existing cross correlation between PETROLEOS MEXICANOS 65 and The Travelers Companies, you can compare the effects of market volatilities on PETROLEOS 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 PETROLEOS with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PETROLEOS and Travelers Companies.
Diversification Opportunities for PETROLEOS and Travelers Companies
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PETROLEOS and Travelers is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding PETROLEOS MEXICANOS 65 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 PETROLEOS 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 PETROLEOS MEXICANOS 65 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 PETROLEOS i.e., PETROLEOS and Travelers Companies go up and down completely randomly.
Pair Corralation between PETROLEOS and Travelers Companies
Assuming the 90 days trading horizon PETROLEOS MEXICANOS 65 is expected to under-perform the Travelers Companies. In addition to that, PETROLEOS is 2.46 times more volatile than The Travelers Companies. It trades about -0.24 of its total potential returns per unit of risk. The Travelers Companies is currently generating about -0.15 per unit of volatility. If you would invest 25,728 in The Travelers Companies on September 12, 2024 and sell it today you would lose (963.00) from holding The Travelers Companies or give up 3.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PETROLEOS MEXICANOS 65 vs. The Travelers Companies
Performance |
| Timeline |
| PETROLEOS MEXICANOS |
| The Travelers Companies |
PETROLEOS and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PETROLEOS and Travelers Companies
The main advantage of trading using opposite PETROLEOS and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PETROLEOS 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.| PETROLEOS vs. AEP TEX INC | PETROLEOS vs. US BANK NATIONAL | PETROLEOS vs. Applied Blockchain | PETROLEOS vs. BigBearai 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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