Correlation Between Everspin Technologies and TRAVELERS

Can any of the company-specific risk be diversified away by investing in both Everspin Technologies and TRAVELERS 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 Everspin Technologies and TRAVELERS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Everspin Technologies and TRAVELERS INC 405, you can compare the effects of market volatilities on Everspin Technologies and TRAVELERS 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 Everspin Technologies with a short position of TRAVELERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everspin Technologies and TRAVELERS.

Diversification Opportunities for Everspin Technologies and TRAVELERS

0.04

Correlation Coefficient

Everspin Technologies  TRAVELERS

Significant diversification

The 3 months correlation between Everspin and TRAVELERS is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Everspin Technologies and TRAVELERS INC 405 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRAVELERS INC 405 and Everspin Technologies 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 Everspin Technologies are associated (or correlated) with TRAVELERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRAVELERS INC 405 has no effect on the direction of Everspin Technologies i.e., Everspin Technologies and TRAVELERS go up and down completely randomly.

Pair Corralation between Everspin Technologies and TRAVELERS

Given the investment horizon of 90 days Everspin Technologies is expected to generate 1.01 times more return on investment than TRAVELERS. However, Everspin Technologies is 1.01 times more volatile than TRAVELERS INC 405. It trades about 0.03 of its potential returns per unit of risk. TRAVELERS INC 405 is currently generating about -0.08 per unit of risk. If you would invest  633.00  in Everspin Technologies on October 10, 2024 and sell it today you would earn a total of  17.00  from holding Everspin Technologies or generate 2.69% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	51.61%
Values	Daily Returns

Everspin Technologies  vs.  TRAVELERS INC 405

Everspin Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Everspin Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Everspin Technologies is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

TRAVELERS INC 405

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days TRAVELERS INC 405 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for TRAVELERS INC 405 investors.

Pair Trading with Everspin Technologies and TRAVELERS

The main advantage of trading using opposite Everspin Technologies and TRAVELERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everspin Technologies position performs unexpectedly, TRAVELERS 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 will offset losses from the drop in TRAVELERS's long position.

The idea behind Everspin Technologies and TRAVELERS INC 405 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.

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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.