Correlation Between Zurich Insurance and GreenX Metals
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and GreenX Metals 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 GreenX Metals 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 GreenX Metals, you can compare the effects of market volatilities on Zurich Insurance and GreenX Metals 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 GreenX Metals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and GreenX Metals.
Diversification Opportunities for Zurich Insurance and GreenX Metals
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zurich and GreenX is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and GreenX Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenX Metals 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 GreenX Metals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenX Metals has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and GreenX Metals go up and down completely randomly.
Pair Corralation between Zurich Insurance and GreenX Metals
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.32 times more return on investment than GreenX Metals. However, Zurich Insurance Group is 3.14 times less risky than GreenX Metals. It trades about 0.08 of its potential returns per unit of risk. GreenX Metals is currently generating about 0.0 per unit of risk. If you would invest 42,700 in Zurich Insurance Group on August 31, 2024 and sell it today you would earn a total of 12,660 from holding Zurich Insurance Group or generate 29.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Zurich Insurance Group vs. GreenX Metals
Performance |
| Timeline |
| Zurich Insurance |
| GreenX Metals |
Zurich Insurance and GreenX Metals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and GreenX Metals
The main advantage of trading using opposite Zurich Insurance and GreenX Metals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, GreenX Metals 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 GreenX Metals will offset losses from the drop in GreenX Metals' long position.| Zurich Insurance vs. Roper Technologies | Zurich Insurance vs. Monster Beverage Corp | Zurich Insurance vs. Uber Technologies | Zurich Insurance vs. AfriTin Mining |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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