Correlation Between PICC Property and Travelers Companies

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both PICC Property 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 PICC Property and Travelers Companies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PICC Property And and The Travelers Companies, you can compare the effects of market volatilities on PICC Property 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 PICC Property with a short position of Travelers Companies. Check out your portfolio center. Please also check ongoing floating volatility patterns of PICC Property and Travelers Companies.

Diversification Opportunities for PICC Property and Travelers Companies

-0.92
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between PPCCF and Travelers is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding PICC Property And 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 PICC Property 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 PICC Property And 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 PICC Property i.e., PICC Property and Travelers Companies go up and down completely randomly.

Pair Corralation between PICC Property and Travelers Companies

Assuming the 90 days horizon PICC Property And is expected to under-perform the Travelers Companies. But the otc pink sheet apears to be less risky and, when comparing its historical volatility, PICC Property And is 6.18 times less risky than Travelers Companies. The otc pink sheet trades about -0.13 of its potential returns per unit of risk. The The Travelers Companies is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  16,096  in The Travelers Companies on September 4, 2022 and sell it today you would earn a total of  2,858  from holding The Travelers Companies or generate 17.76% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy98.44%
ValuesDaily Returns

PICC Property And  vs.  The Travelers Companies

 Performance (%) 
       Timeline  
PICC Property And 
PPCCF Performance
0 of 100
Over the last 90 days PICC Property And has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, PICC Property is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

PPCCF Price Channel

The Travelers Companies 
Travelers Performance
13 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in The Travelers Companies are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Travelers Companies showed solid returns over the last few months and may actually be approaching a breakup point.

Travelers Price Channel

PICC Property and Travelers Companies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with PICC Property and Travelers Companies

The main advantage of trading using opposite PICC Property and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PICC Property 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.
PICC Property vs. American Financial Group
PICC Property vs. Allstate Corp
PICC Property vs. Chubb
PICC Property vs. Cincinnati Financial
The idea behind PICC Property And and The Travelers Companies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Travelers Companies vs. American Financial Group
Travelers Companies vs. Horace Mann Educators
Travelers Companies vs. Loews Corp
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 ETF Directory module to find actively traded Exchange Traded Funds (ETF) from around the world.

Other Complementary Tools

Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go