Correlation Between Zurich Insurance and Blackstone Loan
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Blackstone Loan 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 Blackstone Loan 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 Blackstone Loan Financing, you can compare the effects of market volatilities on Zurich Insurance and Blackstone Loan 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 Blackstone Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Blackstone Loan.
Diversification Opportunities for Zurich Insurance and Blackstone Loan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zurich and Blackstone is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Blackstone Loan Financing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blackstone Loan Financing 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 Blackstone Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blackstone Loan Financing has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Blackstone Loan go up and down completely randomly.
Pair Corralation between Zurich Insurance and Blackstone Loan
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.79 times more return on investment than Blackstone Loan. However, Zurich Insurance Group is 1.26 times less risky than Blackstone Loan. It trades about 0.09 of its potential returns per unit of risk. Blackstone Loan Financing is currently generating about 0.07 per unit of risk. If you would invest 40,638 in Zurich Insurance Group on October 16, 2024 and sell it today you would earn a total of 12,182 from holding Zurich Insurance Group or generate 29.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.72% |
| Values | Daily Returns |
Zurich Insurance Group vs. Blackstone Loan Financing
Performance |
| Timeline |
| Zurich Insurance |
| Blackstone Loan Financing |
Zurich Insurance and Blackstone Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Blackstone Loan
The main advantage of trading using opposite Zurich Insurance and Blackstone Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Blackstone Loan 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 Blackstone Loan will offset losses from the drop in Blackstone Loan's long position.| Zurich Insurance vs. BE Semiconductor Industries | Zurich Insurance vs. Southwest Airlines Co | Zurich Insurance vs. Empire Metals Limited | Zurich Insurance vs. Travel Leisure Co |
| Blackstone Loan vs. Zurich Insurance Group | Blackstone Loan vs. Pentair PLC | Blackstone Loan vs. CAP LEASE AVIATION | Blackstone Loan vs. Young Cos Brewery |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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