Correlation Between AM EAGLE and ZURICH INSURANCE
Can any of the company-specific risk be diversified away by investing in both AM EAGLE and ZURICH INSURANCE 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 AM EAGLE and ZURICH INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AM EAGLE OUTFITTERS and ZURICH INSURANCE GROUP, you can compare the effects of market volatilities on AM EAGLE and ZURICH INSURANCE 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 AM EAGLE with a short position of ZURICH INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of AM EAGLE and ZURICH INSURANCE.
Diversification Opportunities for AM EAGLE and ZURICH INSURANCE
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between AFG and ZURICH is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding AM EAGLE OUTFITTERS and ZURICH INSURANCE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZURICH INSURANCE and AM EAGLE 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 AM EAGLE OUTFITTERS are associated (or correlated) with ZURICH INSURANCE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZURICH INSURANCE has no effect on the direction of AM EAGLE i.e., AM EAGLE and ZURICH INSURANCE go up and down completely randomly.
Pair Corralation between AM EAGLE and ZURICH INSURANCE
Assuming the 90 days trading horizon AM EAGLE is expected to generate 30.79 times less return on investment than ZURICH INSURANCE. In addition to that, AM EAGLE is 2.48 times more volatile than ZURICH INSURANCE GROUP. It trades about 0.0 of its total potential returns per unit of risk. ZURICH INSURANCE GROUP is currently generating about 0.32 per unit of volatility. If you would invest 2,720 in ZURICH INSURANCE GROUP on September 1, 2024 and sell it today you would earn a total of 220.00 from holding ZURICH INSURANCE GROUP or generate 8.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
AM EAGLE OUTFITTERS vs. ZURICH INSURANCE GROUP
Performance |
Timeline |
AM EAGLE OUTFITTERS |
ZURICH INSURANCE |
AM EAGLE and ZURICH INSURANCE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with AM EAGLE and ZURICH INSURANCE
The main advantage of trading using opposite AM EAGLE and ZURICH INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AM EAGLE position performs unexpectedly, ZURICH INSURANCE 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 ZURICH INSURANCE will offset losses from the drop in ZURICH INSURANCE's long position.AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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