Correlation Between Jacquet Metal and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Jacquet Metal and Zurich Insurance 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 Jacquet Metal and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jacquet Metal Service and Zurich Insurance Group, you can compare the effects of market volatilities on Jacquet Metal and Zurich Insurance 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 Jacquet Metal with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jacquet Metal and Zurich Insurance.
Diversification Opportunities for Jacquet Metal and Zurich Insurance
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jacquet and Zurich is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Jacquet Metal Service and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Jacquet Metal 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 Jacquet Metal Service are associated (or correlated) with Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of Jacquet Metal i.e., Jacquet Metal and Zurich Insurance go up and down completely randomly.
Pair Corralation between Jacquet Metal and Zurich Insurance
Assuming the 90 days trading horizon Jacquet Metal Service is expected to under-perform the Zurich Insurance. In addition to that, Jacquet Metal is 2.01 times more volatile than Zurich Insurance Group. It trades about -0.03 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.49 per unit of volatility. If you would invest 51,245 in Zurich Insurance Group on September 2, 2024 and sell it today you would earn a total of 4,175 from holding Zurich Insurance Group or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jacquet Metal Service vs. Zurich Insurance Group
Performance |
| Timeline |
| Jacquet Metal Service |
| Zurich Insurance |
Jacquet Metal and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jacquet Metal and Zurich Insurance
The main advantage of trading using opposite Jacquet Metal and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jacquet Metal position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| Jacquet Metal vs. Zurich Insurance Group | Jacquet Metal vs. TR Property Investment | Jacquet Metal vs. Verizon Communications | Jacquet Metal vs. Air Products Chemicals |
| Zurich Insurance vs. Trainline Plc | Zurich Insurance vs. Thyssenkrupp AG ON | Zurich Insurance vs. Cloudcoco Group PLC | Zurich Insurance vs. Diversified Energy |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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