Correlation Between Travelers Companies and Helios Technologies
Can any of the company-specific risk be diversified away by investing in both Travelers Companies and Helios Technologies 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 Helios Technologies 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 Helios Technologies, you can compare the effects of market volatilities on Travelers Companies and Helios Technologies 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 Helios Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Travelers Companies and Helios Technologies.
Diversification Opportunities for Travelers Companies and Helios Technologies
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Travelers and Helios is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding The Travelers Companies and Helios Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Technologies 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 Helios Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Technologies has no effect on the direction of Travelers Companies i.e., Travelers Companies and Helios Technologies go up and down completely randomly.
Pair Corralation between Travelers Companies and Helios Technologies
Considering the 90-day investment horizon Travelers Companies is expected to generate 3.46 times less return on investment than Helios Technologies. But when comparing it to its historical volatility, The Travelers Companies is 2.1 times less risky than Helios Technologies. It trades about 0.03 of its potential returns per unit of risk. Helios Technologies is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 5,421 in Helios Technologies on September 12, 2025 and sell it today you would earn a total of 329.00 from holding Helios Technologies or generate 6.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Travelers Companies vs. Helios Technologies
Performance |
| Timeline |
| The Travelers Companies |
| Helios Technologies |
Travelers Companies and Helios Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Travelers Companies and Helios Technologies
The main advantage of trading using opposite Travelers Companies and Helios Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Travelers Companies position performs unexpectedly, Helios Technologies 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 Helios Technologies will offset losses from the drop in Helios Technologies' long position.| Travelers Companies vs. Mercury General | Travelers Companies vs. Lemonade | Travelers Companies vs. White Mountains Insurance | Travelers Companies vs. Radian Group |
| Helios Technologies vs. Power Solutions International, | Helios Technologies vs. Enovis Corp | Helios Technologies vs. Nano Nuclear Energy | Helios Technologies vs. Babcock Wilcox Enterprises |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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