Correlation Between Travelers Companies and TELEFONICA
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By analyzing existing cross correlation between The Travelers Companies and TELEFONICA EUROPE B, you can compare the effects of market volatilities on Travelers Companies and TELEFONICA 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 TELEFONICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and TELEFONICA.
Diversification Opportunities for Travelers Companies and TELEFONICA
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Travelers and TELEFONICA is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and TELEFONICA EUROPE B in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELEFONICA EUROPE 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 TELEFONICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELEFONICA EUROPE has no effect on the direction of Travelers Companies i.e., Travelers Companies and TELEFONICA go up and down completely randomly.
Pair Corralation between Travelers Companies and TELEFONICA
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the TELEFONICA. In addition to that, Travelers Companies is 1.95 times more volatile than TELEFONICA EUROPE B. It trades about -0.15 of its total potential returns per unit of risk. TELEFONICA EUROPE B is currently generating about -0.17 per unit of volatility. If you would invest 11,537 in TELEFONICA EUROPE B on September 12, 2024 and sell it today you would lose (255.00) from holding TELEFONICA EUROPE B or give up 2.21% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
The Travelers Companies vs. TELEFONICA EUROPE B
Performance |
Timeline |
The Travelers Companies |
TELEFONICA EUROPE |
Travelers Companies and TELEFONICA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Travelers Companies and TELEFONICA
The main advantage of trading using opposite Travelers Companies and TELEFONICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, TELEFONICA 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 TELEFONICA will offset losses from the drop in TELEFONICA's long position.Travelers Companies vs. Aeye Inc | Travelers Companies vs. Ep Emerging Markets | Travelers Companies vs. LiCycle Holdings Corp | Travelers Companies vs. SEI Investments |
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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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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