Correlation Between Zurich Insurance and Anglesey Mining
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Anglesey 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 Anglesey 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 Anglesey Mining, you can compare the effects of market volatilities on Zurich Insurance and Anglesey 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 Anglesey Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Anglesey Mining.
Diversification Opportunities for Zurich Insurance and Anglesey Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zurich and Anglesey is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Anglesey Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglesey 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 Anglesey Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglesey Mining has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Anglesey Mining go up and down completely randomly.
Pair Corralation between Zurich Insurance and Anglesey Mining
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 3.85 times less return on investment than Anglesey Mining. But when comparing it to its historical volatility, Zurich Insurance Group is 4.73 times less risky than Anglesey Mining. It trades about 0.25 of its potential returns per unit of risk. Anglesey Mining is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 72.00 in Anglesey Mining on November 29, 2024 and sell it today you would earn a total of 18.00 from holding Anglesey Mining or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Anglesey Mining
Performance |
| Timeline |
| Zurich Insurance |
| Anglesey Mining |
Zurich Insurance and Anglesey Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Anglesey Mining
The main advantage of trading using opposite Zurich Insurance and Anglesey Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Anglesey 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 Anglesey Mining will offset losses from the drop in Anglesey Mining's long position.| Zurich Insurance vs. Tatton Asset Management | Zurich Insurance vs. Fevertree Drinks Plc | Zurich Insurance vs. InterContinental Hotels Group | Zurich Insurance vs. Host Hotels Resorts |
| Anglesey Mining vs. Orient Telecoms | Anglesey Mining vs. Telecom Italia SpA | Anglesey Mining vs. Delta Air Lines | Anglesey Mining vs. Litigation Capital Management |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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