Correlation Between Shore Bancshares and Travelers Companies

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

Diversification Opportunities for Shore Bancshares and Travelers Companies

0.29
  Correlation Coefficient

Modest diversification

The 3 months correlation between Shore and Travelers is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Shore Bancshares 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 Shore Bancshares 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 Shore Bancshares 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 Shore Bancshares i.e., Shore Bancshares and Travelers Companies go up and down completely randomly.

Pair Corralation between Shore Bancshares and Travelers Companies

Given the investment horizon of 90 days Shore Bancshares is expected to generate 1.26 times more return on investment than Travelers Companies. However, Shore Bancshares is 1.26 times more volatile than The Travelers Companies. It trades about 0.06 of its potential returns per unit of risk. The Travelers Companies is currently generating about 0.05 per unit of risk. If you would invest  1,090  in Shore Bancshares on June 28, 2022 and sell it today you would earn a total of  698.00  from holding Shore Bancshares or generate 64.04% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Shore Bancshares  vs.  The Travelers Companies

 Performance (%) 
       Timeline  
Shore Bancshares 
Shore Performance
0 of 100
Over the last 90 days Shore Bancshares has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Shore Bancshares is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Shore Price Channel

The Travelers Companies 
Travelers Performance
0 of 100
Over the last 90 days The Travelers Companies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain stable and the latest fuss on Wall Street may also be a sign of long-term gains for the venture sophisticated investors.

Travelers Price Channel

Shore Bancshares and Travelers Companies Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shore Bancshares and Travelers Companies

The main advantage of trading using opposite Shore Bancshares and Travelers Companies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shore Bancshares 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.
Shore Bancshares vs. Kibush Capital Corp
The idea behind Shore Bancshares 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. Kibush Capital 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

CEO Directory
Screen CEOs from public companies around the world
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Transaction History
View history of all your transactions and understand their impact on performance
Go