Correlation Between Zurich Insurance and Beowulf Mining
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Beowulf 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 Beowulf 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 Beowulf Mining, you can compare the effects of market volatilities on Zurich Insurance and Beowulf 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 Beowulf Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Beowulf Mining.
Diversification Opportunities for Zurich Insurance and Beowulf Mining
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zurich and Beowulf is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Beowulf Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beowulf 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 Beowulf Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beowulf Mining has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Beowulf Mining go up and down completely randomly.
Pair Corralation between Zurich Insurance and Beowulf Mining
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 1.12 times more return on investment than Beowulf Mining. However, Zurich Insurance is 1.12 times more volatile than Beowulf Mining. It trades about 0.33 of its potential returns per unit of risk. Beowulf Mining is currently generating about -0.31 per unit of risk. If you would invest 52,036 in Zurich Insurance Group on August 28, 2024 and sell it today you would earn a total of 3,164 from holding Zurich Insurance Group or generate 6.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Beowulf Mining
Performance |
| Timeline |
| Zurich Insurance |
| Beowulf Mining |
Zurich Insurance and Beowulf Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Beowulf Mining
The main advantage of trading using opposite Zurich Insurance and Beowulf Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Beowulf 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 Beowulf Mining will offset losses from the drop in Beowulf Mining's long position.| Zurich Insurance vs. Cizzle Biotechnology Holdings | Zurich Insurance vs. X FAB Silicon Foundries | Zurich Insurance vs. Allianz Technology Trust | Zurich Insurance vs. Alfa Financial Software |
| Beowulf Mining vs. Iron Mountain | Beowulf Mining vs. Zanaga Iron Ore | Beowulf Mining vs. Lords Grp Trading | Beowulf Mining vs. Kinnevik Investment AB |
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 Stocks Directory module to find actively traded stocks across global markets.
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