Correlation Between TRAVELERS and Inflection Point
Specify exactly 2 symbols:
By analyzing existing cross correlation between TRAVELERS INC 375 and Inflection Point Acquisition, you can compare the effects of market volatilities on TRAVELERS and Inflection Point 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 Inflection Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRAVELERS and Inflection Point.
Diversification Opportunities for TRAVELERS and Inflection Point
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TRAVELERS and Inflection is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding TRAVELERS INC 375 and Inflection Point Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inflection Point Acq 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 375 are associated (or correlated) with Inflection Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inflection Point Acq has no effect on the direction of TRAVELERS i.e., TRAVELERS and Inflection Point go up and down completely randomly.
Pair Corralation between TRAVELERS and Inflection Point
Assuming the 90 days trading horizon TRAVELERS INC 375 is expected to under-perform the Inflection Point. In addition to that, TRAVELERS is 6.36 times more volatile than Inflection Point Acquisition. It trades about -0.17 of its total potential returns per unit of risk. Inflection Point Acquisition is currently generating about 0.2 per unit of volatility. If you would invest 1,075 in Inflection Point Acquisition on September 2, 2024 and sell it today you would earn a total of 25.00 from holding Inflection Point Acquisition or generate 2.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 48.44% |
| Values | Daily Returns |
TRAVELERS INC 375 vs. Inflection Point Acquisition
Performance |
| Timeline |
| TRAVELERS INC 375 |
| Inflection Point Acq |
TRAVELERS and Inflection Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRAVELERS and Inflection Point
The main advantage of trading using opposite TRAVELERS and Inflection Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRAVELERS position performs unexpectedly, Inflection Point 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 Inflection Point will offset losses from the drop in Inflection Point's long position.| TRAVELERS vs. AEP TEX INC | TRAVELERS vs. US BANK NATIONAL | TRAVELERS vs. American Express | TRAVELERS vs. Chevron Corp |
| Inflection Point vs. Kinsale Capital Group | Inflection Point vs. GoHealth | Inflection Point vs. Stratasys | Inflection Point vs. NI Holdings |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |