Correlation Between 90331HPL1 and TRAVELERS
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By analyzing existing cross correlation between US BANK NATIONAL and TRAVELERS INS GROUP, you can compare the effects of market volatilities on 90331HPL1 and TRAVELERS 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 90331HPL1 with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and TRAVELERS.
Diversification Opportunities for 90331HPL1 and TRAVELERS
Average diversification
The 3 months correlation between 90331HPL1 and TRAVELERS is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and TRAVELERS INS GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INS GROUP and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INS GROUP has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and TRAVELERS go up and down completely randomly.
Pair Corralation between 90331HPL1 and TRAVELERS
Assuming the 90 days trading horizon US BANK NATIONAL is expected to under-perform the TRAVELERS. In addition to that, 90331HPL1 is 1.77 times more volatile than TRAVELERS INS GROUP. It trades about -0.2 of its total potential returns per unit of risk. TRAVELERS INS GROUP is currently generating about 0.19 per unit of volatility. If you would invest 10,481 in TRAVELERS INS GROUP on September 1, 2024 and sell it today you would earn a total of 130.00 from holding TRAVELERS INS GROUP or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 60.0% |
| Values | Daily Returns |
US BANK NATIONAL vs. TRAVELERS INS GROUP
Performance |
| Timeline |
| US BANK NATIONAL |
| TRAVELERS INS GROUP |
90331HPL1 and TRAVELERS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 90331HPL1 and TRAVELERS
The main advantage of trading using opposite 90331HPL1 and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, TRAVELERS 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 will offset losses from the drop in TRAVELERS's long position.| 90331HPL1 vs. Centessa Pharmaceuticals PLC | 90331HPL1 vs. Catalyst Pharmaceuticals | 90331HPL1 vs. Acumen Pharmaceuticals | 90331HPL1 vs. Inhibrx |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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