Correlation Between TRAVELERS and Weyco
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By analyzing existing cross correlation between TRAVELERS INC 46 and Weyco Group, you can compare the effects of market volatilities on TRAVELERS and Weyco 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 Weyco. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVELERS and Weyco.
Diversification Opportunities for TRAVELERS and Weyco
Very good diversification
The 3 months correlation between TRAVELERS and Weyco is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding TRAVELERS INC 46 and Weyco Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weyco Group 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 46 are associated (or correlated) with Weyco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weyco Group has no effect on the direction of TRAVELERS i.e., TRAVELERS and Weyco go up and down completely randomly.
Pair Corralation between TRAVELERS and Weyco
Assuming the 90 days trading horizon TRAVELERS is expected to generate 1.42 times less return on investment than Weyco. But when comparing it to its historical volatility, TRAVELERS INC 46 is 4.86 times less risky than Weyco. It trades about 0.28 of its potential returns per unit of risk. Weyco Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,353 in Weyco Group on September 2, 2024 and sell it today you would earn a total of 218.00 from holding Weyco Group or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 80.95% |
| Values | Daily Returns |
TRAVELERS INC 46 vs. Weyco Group
Performance |
| Timeline |
| TRAVELERS INC 46 |
| Weyco Group |
TRAVELERS and Weyco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVELERS and Weyco
The main advantage of trading using opposite TRAVELERS and Weyco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVELERS position performs unexpectedly, Weyco 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 Weyco will offset losses from the drop in Weyco's long position.| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. American Express | TRAVELERS vs. Chevron 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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