Correlation Between Zurich Insurance and Zinc Media
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Zinc Media 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 Zinc Media 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 Zinc Media Group, you can compare the effects of market volatilities on Zurich Insurance and Zinc Media 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 Zinc Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Zinc Media.
Diversification Opportunities for Zurich Insurance and Zinc Media
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zurich and Zinc is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Zinc Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zinc Media Group 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 Zinc Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zinc Media Group has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Zinc Media go up and down completely randomly.
Pair Corralation between Zurich Insurance and Zinc Media
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.4 times more return on investment than Zinc Media. However, Zurich Insurance Group is 2.48 times less risky than Zinc Media. It trades about 0.05 of its potential returns per unit of risk. Zinc Media Group is currently generating about -0.02 per unit of risk. If you would invest 44,196 in Zurich Insurance Group on October 14, 2024 and sell it today you would earn a total of 9,544 from holding Zurich Insurance Group or generate 21.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.79% |
| Values | Daily Returns |
Zurich Insurance Group vs. Zinc Media Group
Performance |
| Timeline |
| Zurich Insurance |
| Zinc Media Group |
Zurich Insurance and Zinc Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Zinc Media
The main advantage of trading using opposite Zurich Insurance and Zinc Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Zinc Media 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 Zinc Media will offset losses from the drop in Zinc Media's long position.| Zurich Insurance vs. AcadeMedia AB | Zurich Insurance vs. Liberty Media Corp | Zurich Insurance vs. One Media iP | Zurich Insurance vs. Coor Service Management |
| Zinc Media vs. Compagnie Plastic Omnium | Zinc Media vs. Zurich Insurance Group | Zinc Media vs. JD Sports Fashion | Zinc Media vs. UNIQA Insurance Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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