Correlation Between Zurich Insurance and Public Storage
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Public Storage 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 Zurich Insurance and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zurich Insurance Group and Public Storage, you can compare the effects of market volatilities on Zurich Insurance and Public Storage 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 Zurich Insurance with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Public Storage.
Diversification Opportunities for Zurich Insurance and Public Storage
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zurich and Public is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Zurich Insurance 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 Zurich Insurance Group are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Public Storage go up and down completely randomly.
Pair Corralation between Zurich Insurance and Public Storage
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.54 times more return on investment than Public Storage. However, Zurich Insurance Group is 1.86 times less risky than Public Storage. It trades about 0.05 of its potential returns per unit of risk. Public Storage is currently generating about 0.02 per unit of risk. If you would invest 44,196 in Zurich Insurance Group on October 14, 2024 and sell it today you would earn a total of 9,544 from holding Zurich Insurance Group or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.4% |
| Values | Daily Returns |
Zurich Insurance Group vs. Public Storage
Performance |
| Timeline |
| Zurich Insurance |
| Public Storage |
Zurich Insurance and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Public Storage
The main advantage of trading using opposite Zurich Insurance and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Public Storage 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 Public Storage will offset losses from the drop in Public Storage's long position.| Zurich Insurance vs. Lundin Mining Corp | Zurich Insurance vs. European Metals Holdings | Zurich Insurance vs. First Class Metals | Zurich Insurance vs. Golden Metal Resources |
| Public Storage vs. Concurrent Technologies Plc | Public Storage vs. Xeros Technology Group | Public Storage vs. Zurich Insurance Group | Public Storage vs. Celebrus Technologies plc |
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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