Correlation Between TRAVELERS and Kenon Holdings
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By analyzing existing cross correlation between TRAVELERS INS GROUP and Kenon Holdings, you can compare the effects of market volatilities on TRAVELERS and Kenon Holdings 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 TRAVELERS with a short position of Kenon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVELERS and Kenon Holdings.
Diversification Opportunities for TRAVELERS and Kenon Holdings
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TRAVELERS and Kenon is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding TRAVELERS INS GROUP and Kenon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kenon Holdings and TRAVELERS 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 TRAVELERS INS GROUP are associated (or correlated) with Kenon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kenon Holdings has no effect on the direction of TRAVELERS i.e., TRAVELERS and Kenon Holdings go up and down completely randomly.
Pair Corralation between TRAVELERS and Kenon Holdings
Assuming the 90 days trading horizon TRAVELERS is expected to generate 2.31 times less return on investment than Kenon Holdings. But when comparing it to its historical volatility, TRAVELERS INS GROUP is 3.14 times less risky than Kenon Holdings. It trades about 0.24 of its potential returns per unit of risk. Kenon Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,874 in Kenon Holdings on September 12, 2024 and sell it today you would earn a total of 205.00 from holding Kenon Holdings or generate 7.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 45.45% |
| Values | Daily Returns |
TRAVELERS INS GROUP vs. Kenon Holdings
Performance |
| Timeline |
| TRAVELERS INS GROUP |
| Kenon Holdings |
TRAVELERS and Kenon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVELERS and Kenon Holdings
The main advantage of trading using opposite TRAVELERS and Kenon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVELERS position performs unexpectedly, Kenon Holdings 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 Kenon Holdings will offset losses from the drop in Kenon Holdings' long position.| TRAVELERS vs. Kenon Holdings | TRAVELERS vs. Infosys Ltd ADR | TRAVELERS vs. Cheniere Energy Partners | TRAVELERS vs. FactSet Research Systems |
| Kenon Holdings vs. Vistra Energy Corp | Kenon Holdings vs. Pampa Energia SA | Kenon Holdings vs. NRG Energy | Kenon Holdings vs. TransAlta Corp |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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