Correlation Between TRAVELERS and SNDL
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By analyzing existing cross correlation between TRAVELERS INC 535 and SNDL Inc, you can compare the effects of market volatilities on TRAVELERS and SNDL 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 SNDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVELERS and SNDL.
Diversification Opportunities for TRAVELERS and SNDL
Significant diversification
The 3 months correlation between TRAVELERS and SNDL is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding TRAVELERS INC 535 and SNDL Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SNDL Inc 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 INC 535 are associated (or correlated) with SNDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SNDL Inc has no effect on the direction of TRAVELERS i.e., TRAVELERS and SNDL go up and down completely randomly.
Pair Corralation between TRAVELERS and SNDL
Assuming the 90 days trading horizon TRAVELERS INC 535 is expected to generate 1.78 times more return on investment than SNDL. However, TRAVELERS is 1.78 times more volatile than SNDL Inc. It trades about 0.05 of its potential returns per unit of risk. SNDL Inc is currently generating about -0.29 per unit of risk. If you would invest 9,994 in TRAVELERS INC 535 on September 14, 2024 and sell it today you would earn a total of 148.00 from holding TRAVELERS INC 535 or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
TRAVELERS INC 535 vs. SNDL Inc
Performance |
| Timeline |
| TRAVELERS INC 535 |
| SNDL Inc |
TRAVELERS and SNDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVELERS and SNDL
The main advantage of trading using opposite TRAVELERS and SNDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVELERS position performs unexpectedly, SNDL 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 SNDL will offset losses from the drop in SNDL's long position.| TRAVELERS vs. SNDL Inc | TRAVELERS vs. Ambev SA ADR | TRAVELERS vs. Arrow Electronics | TRAVELERS vs. Fevertree Drinks Plc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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