Correlation Between Assicurazioni Generali and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali 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 Assicurazioni Generali and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and Zurich Insurance Group, you can compare the effects of market volatilities on Assicurazioni Generali 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 Assicurazioni Generali with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Zurich Insurance.
Diversification Opportunities for Assicurazioni Generali and Zurich Insurance
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Assicurazioni and Zurich is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Assicurazioni Generali 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 Assicurazioni Generali SpA 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 Assicurazioni Generali i.e., Assicurazioni Generali and Zurich Insurance go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Zurich Insurance
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.31 times more return on investment than Zurich Insurance. However, Assicurazioni Generali is 1.31 times more volatile than Zurich Insurance Group. It trades about 0.13 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.15 per unit of risk. If you would invest 1,067 in Assicurazioni Generali SpA on August 28, 2024 and sell it today you would earn a total of 361.00 from holding Assicurazioni Generali SpA or generate 33.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Zurich Insurance Group
Performance |
| Timeline |
| Assicurazioni Generali |
| Zurich Insurance |
Assicurazioni Generali and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Zurich Insurance
The main advantage of trading using opposite Assicurazioni Generali and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali 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.| Assicurazioni Generali vs. AXA SA | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Arch Capital Group |
| Zurich Insurance vs. Assicurazioni Generali SpA | Zurich Insurance vs. ageas SANV | Zurich Insurance vs. AXA SA | Zurich Insurance vs. Sampo OYJ |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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