Correlation Between 893574AK9 and Travelers Companies
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By analyzing existing cross correlation between TRANSCONTINENTAL GAS PIPE and The Travelers Companies, you can compare the effects of market volatilities on 893574AK9 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 893574AK9 with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of 893574AK9 and Travelers Companies.
Diversification Opportunities for 893574AK9 and Travelers Companies
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between 893574AK9 and Travelers is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding TRANSCONTINENTAL GAS PIPE 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 893574AK9 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 TRANSCONTINENTAL GAS PIPE 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 893574AK9 i.e., 893574AK9 and Travelers Companies go up and down completely randomly.
Pair Corralation between 893574AK9 and Travelers Companies
Assuming the 90 days trading horizon TRANSCONTINENTAL GAS PIPE is expected to generate 43.52 times more return on investment than Travelers Companies. However, 893574AK9 is 43.52 times more volatile than The Travelers Companies. It trades about 0.05 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.08 per unit of risk. If you would invest 9,460 in TRANSCONTINENTAL GAS PIPE on September 12, 2024 and sell it today you would earn a total of 100.00 from holding TRANSCONTINENTAL GAS PIPE or generate 1.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 77.48% |
| Values | Daily Returns |
TRANSCONTINENTAL GAS PIPE vs. The Travelers Companies
Performance |
| Timeline |
| TRANSCONTINENTAL GAS PIPE |
| The Travelers Companies |
893574AK9 and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 893574AK9 and Travelers Companies
The main advantage of trading using opposite 893574AK9 and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 893574AK9 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.| 893574AK9 vs. Air Lease | 893574AK9 vs. Corporacion America Airports | 893574AK9 vs. Mind Medicine | 893574AK9 vs. Regeneron Pharmaceuticals |
| 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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