Correlation Between Gruppo MutuiOnline and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline 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 Gruppo MutuiOnline and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo MutuiOnline SpA and Zurich Insurance Group, you can compare the effects of market volatilities on Gruppo MutuiOnline 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 Gruppo MutuiOnline with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Zurich Insurance.
Diversification Opportunities for Gruppo MutuiOnline and Zurich Insurance
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruppo and Zurich is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA 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 Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Zurich Insurance go up and down completely randomly.
Pair Corralation between Gruppo MutuiOnline and Zurich Insurance
Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to under-perform the Zurich Insurance. In addition to that, Gruppo MutuiOnline is 2.2 times more volatile than Zurich Insurance Group. It trades about -0.02 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.03 per unit of volatility. If you would invest 53,780 in Zurich Insurance Group on October 29, 2024 and sell it today you would earn a total of 200.00 from holding Zurich Insurance Group or generate 0.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 40.0% |
| Values | Daily Returns |
Gruppo MutuiOnline SpA vs. Zurich Insurance Group
Performance |
| Timeline |
| Gruppo MutuiOnline SpA |
| Zurich Insurance |
Gruppo MutuiOnline and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo MutuiOnline and Zurich Insurance
The main advantage of trading using opposite Gruppo MutuiOnline and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline 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.| Gruppo MutuiOnline vs. Geely Automobile Holdings | Gruppo MutuiOnline vs. Batm Advanced Communications | Gruppo MutuiOnline vs. Compal Electronics GDR | Gruppo MutuiOnline vs. Electronic Arts |
| Zurich Insurance vs. American Homes 4 | Zurich Insurance vs. Symphony Environmental Technologies | Zurich Insurance vs. Fortune Brands Home | Zurich Insurance vs. bet at home AG |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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