Correlation Between Navigators and Travelers Companies
Can any of the company-specific risk be diversified away by investing in both Navigators and Travelers Companies 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 Navigators and Travelers Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Navigators Group and The Travelers Companies, you can compare the effects of market volatilities on Navigators 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 Navigators with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navigators and Travelers Companies.
Diversification Opportunities for Navigators and Travelers Companies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Navigators and Travelers is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding The Navigators Group 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 Navigators 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 Navigators Group 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 Navigators i.e., Navigators and Travelers Companies go up and down completely randomly.
Pair Corralation between Navigators and Travelers Companies
If you would invest (100.00) in The Navigators Group on January 21, 2024 and sell it today you would earn a total of 100.00 from holding The Navigators Group or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
The Navigators Group vs. The Travelers Companies
Performance |
| Timeline |
| Navigators Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| The Travelers Companies |
Navigators and Travelers Companies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Navigators and Travelers Companies
The main advantage of trading using opposite Navigators and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navigators 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.| Navigators vs. AssetMark Financial Holdings | Navigators vs. Shagrir Group Vehicle | Navigators vs. Guangzhou Automobile Group | Navigators vs. Wallbox NV |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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