Correlation Between Travelers Companies and Admiral Group
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Admiral Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Travelers Companies and Admiral Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Travelers Companies and Admiral Group PLC, you can compare the effects of market volatilities on Travelers Companies and Admiral Group 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 Admiral Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Admiral Group.
Diversification Opportunities for Travelers Companies and Admiral Group
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Travelers and Admiral is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Admiral Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Admiral Group PLC 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 Admiral Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Admiral Group PLC has no effect on the direction of Travelers Companies i.e., Travelers Companies and Admiral Group go up and down completely randomly.
Pair Corralation between Travelers Companies and Admiral Group
Considering the 90-day investment horizon The Travelers Companies is expected to under-perform the Admiral Group. In addition to that, Travelers Companies is 1.35 times more volatile than Admiral Group PLC. It trades about -0.15 of its total potential returns per unit of risk. Admiral Group PLC is currently generating about -0.17 per unit of volatility. If you would invest 3,564 in Admiral Group PLC on January 30, 2024 and sell it today you would lose (182.00) from holding Admiral Group PLC or give up 5.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 95.45% |
Values | Daily Returns |
The Travelers Companies vs. Admiral Group PLC
Performance |
Timeline |
The Travelers Companies |
Admiral Group PLC |
Travelers Companies and Admiral Group Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Travelers Companies and Admiral Group
The main advantage of trading using opposite Travelers Companies and Admiral Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Admiral Group 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 Admiral Group will offset losses from the drop in Admiral Group's long position.Travelers Companies vs. Progressive Corp | Travelers Companies vs. Chubb | Travelers Companies vs. Cincinnati Financial | Travelers Companies vs. W R Berkley |
Admiral Group vs. Root Inc | Admiral Group vs. The Allstate | Admiral Group vs. Im Cannabis Corp | Admiral Group vs. SNDL Inc |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
FinTech Suite Use AI to screen and filter profitable investment opportunities | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Commodity Directory Find actively traded commodities issued by global exchanges |