Correlation Between Viking and Travelers Companies
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By analyzing existing cross correlation between Viking Cruises Ltd and The Travelers Companies, you can compare the effects of market volatilities on Viking and Travelers Companies 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 Viking with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Viking and Travelers Companies.
Diversification Opportunities for Viking and Travelers Companies
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Viking and Travelers is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Viking Cruises Ltd and The Travelers Companies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Travelers Companies and Viking 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 Viking Cruises Ltd are associated (or correlated) with Travelers Companies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Travelers Companies has no effect on the direction of Viking i.e., Viking and Travelers Companies go up and down completely randomly.
Pair Corralation between Viking and Travelers Companies
Assuming the 90 days trading horizon Viking Cruises Ltd is not expected to generate positive returns. However, Viking Cruises Ltd is 19.81 times less risky than Travelers Companies. It waists most of its returns potential to compensate for thr risk taken. Travelers Companies is generating about 0.28 per unit of risk. If you would invest 24,281 in The Travelers Companies on September 5, 2024 and sell it today you would earn a total of 1,778 from holding The Travelers Companies or generate 7.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 54.55% |
| Values | Daily Returns |
Viking Cruises Ltd vs. The Travelers Companies
Performance |
| Timeline |
| Viking Cruises |
| The Travelers Companies |
Viking and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Viking and Travelers Companies
The main advantage of trading using opposite Viking and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Viking position performs unexpectedly, Travelers Companies 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 Companies will offset losses from the drop in Travelers Companies' long position.| Viking vs. Definitive Healthcare Corp | Viking vs. Asure Software | Viking vs. Datadog | Viking vs. Data3 Limited |
| Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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