Correlation Between Travelers Companies and SOCGEN
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By analyzing existing cross correlation between The Travelers Companies and SOCGEN 425 19 AUG 26, you can compare the effects of market volatilities on Travelers Companies and SOCGEN 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 Companies with a short position of SOCGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and SOCGEN.
Diversification Opportunities for Travelers Companies and SOCGEN
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and SOCGEN is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and SOCGEN 425 19 AUG 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SOCGEN 425 19 and Travelers Companies 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 The Travelers Companies are associated (or correlated) with SOCGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SOCGEN 425 19 has no effect on the direction of Travelers Companies i.e., Travelers Companies and SOCGEN go up and down completely randomly.
Pair Corralation between Travelers Companies and SOCGEN
Considering the 90-day investment horizon The Travelers Companies is expected to generate 3.39 times more return on investment than SOCGEN. However, Travelers Companies is 3.39 times more volatile than SOCGEN 425 19 AUG 26. It trades about 0.03 of its potential returns per unit of risk. SOCGEN 425 19 AUG 26 is currently generating about -0.16 per unit of risk. If you would invest 24,053 in The Travelers Companies on September 17, 2024 and sell it today you would earn a total of 574.00 from holding The Travelers Companies or generate 2.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 55.38% |
Values | Daily Returns |
The Travelers Companies vs. SOCGEN 425 19 AUG 26
Performance |
Timeline |
The Travelers Companies |
SOCGEN 425 19 |
Travelers Companies and SOCGEN Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Travelers Companies and SOCGEN
The main advantage of trading using opposite Travelers Companies and SOCGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, SOCGEN 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 SOCGEN will offset losses from the drop in SOCGEN's long position.Travelers Companies vs. W R Berkley | Travelers Companies vs. Markel | Travelers Companies vs. RLI Corp | Travelers Companies vs. White Mountains Insurance |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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