Correlation Between Zurich Insurance and Atalaya Mining
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Atalaya Mining 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 Atalaya Mining 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 Atalaya Mining, you can compare the effects of market volatilities on Zurich Insurance and Atalaya Mining 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 Atalaya Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Atalaya Mining.
Diversification Opportunities for Zurich Insurance and Atalaya Mining
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zurich and Atalaya is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Atalaya Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atalaya Mining 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 Atalaya Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atalaya Mining has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Atalaya Mining go up and down completely randomly.
Pair Corralation between Zurich Insurance and Atalaya Mining
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.35 times more return on investment than Atalaya Mining. However, Zurich Insurance Group is 2.85 times less risky than Atalaya Mining. It trades about 0.32 of its potential returns per unit of risk. Atalaya Mining is currently generating about -0.11 per unit of risk. If you would invest 52,020 in Zurich Insurance Group on August 30, 2024 and sell it today you would earn a total of 3,130 from holding Zurich Insurance Group or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Atalaya Mining
Performance |
| Timeline |
| Zurich Insurance |
| Atalaya Mining |
Zurich Insurance and Atalaya Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Atalaya Mining
The main advantage of trading using opposite Zurich Insurance and Atalaya Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Atalaya Mining 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 Atalaya Mining will offset losses from the drop in Atalaya Mining's long position.| Zurich Insurance vs. Neometals | Zurich Insurance vs. Coor Service Management | Zurich Insurance vs. Fidelity Sustainable USD | Zurich Insurance vs. Sancus Lending Group |
| Atalaya Mining vs. JB Hunt Transport | Atalaya Mining vs. Kinnevik Investment AB | Atalaya Mining vs. TR Property Investment | Atalaya Mining vs. Orient Telecoms |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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