This module allows you to analyze existing cross correlation between The Travelers Companies and Ford Motor Company. You can compare the effects of market volatilities on Travelers Companies and Ford Motor 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 Ford Motor. See also your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Ford Motor.
|Horizon||30 Days Login to change|
|The Travelers Companies|
Over the last 30 days The Travelers Companies has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fairly stable primary indicators, Travelers Companies is not utilizing all of its potentials. The current stock price fuss, may contribute to near short-term losses for the directors.
Over the last 30 days Ford Motor Company has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's fundamental drivers remain rather sound which may send shares a bit higher in September 2019. The ongoing tumult may also be a sign of longer-term up-swing for the firm shareholders.
Travelers Companies and Ford Motor Volatility Contrast
Predicted Return Density
The Travelers Companies Inc vs. Ford Motor Company
Considering 30-days investment horizon, The Travelers Companies is expected to generate 0.66 times more return on investment than Ford Motor. However, The Travelers Companies is 1.51 times less risky than Ford Motor. It trades about -0.04 of its potential returns per unit of risk. Ford Motor Company is currently generating about -0.14 per unit of risk. If you would invest 15,148 in The Travelers Companies on July 21, 2019 and sell it today you would lose (328.00) from holding The Travelers Companies or give up 2.17% of portfolio value over 30 days.
Pair Corralation between Travelers Companies and Ford Motor
|Time Period||2 Months [change]|
Diversification Opportunities for Travelers Companies and Ford Motor
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies Inc and Ford Motor Company in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Ford Motor 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 Ford Motor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ford Motor has no effect on the direction of Travelers Companies i.e. Travelers Companies and Ford Motor go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.