Correlation Between Cicor Technologies and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Cicor Technologies 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 Cicor Technologies and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cicor Technologies and Zurich Insurance Group, you can compare the effects of market volatilities on Cicor Technologies 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 Cicor Technologies with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cicor Technologies and Zurich Insurance.
Diversification Opportunities for Cicor Technologies and Zurich Insurance
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cicor and Zurich is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Cicor Technologies and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Cicor Technologies 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 Cicor Technologies 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 Cicor Technologies i.e., Cicor Technologies and Zurich Insurance go up and down completely randomly.
Pair Corralation between Cicor Technologies and Zurich Insurance
Assuming the 90 days trading horizon Cicor Technologies is expected to generate 1.16 times less return on investment than Zurich Insurance. In addition to that, Cicor Technologies is 1.34 times more volatile than Zurich Insurance Group. It trades about 0.05 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.07 per unit of volatility. If you would invest 40,287 in Zurich Insurance Group on August 28, 2024 and sell it today you would earn a total of 14,913 from holding Zurich Insurance Group or generate 37.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cicor Technologies vs. Zurich Insurance Group
Performance |
| Timeline |
| Cicor Technologies |
| Zurich Insurance |
Cicor Technologies and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cicor Technologies and Zurich Insurance
The main advantage of trading using opposite Cicor Technologies and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cicor Technologies 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.| Cicor Technologies vs. Santhera Pharmaceuticals Holding | Cicor Technologies vs. Newron Pharmaceuticals SpA | Cicor Technologies vs. Basilea Pharmaceutica AG | Cicor Technologies vs. Evolva Holding SA |
| Zurich Insurance vs. Swiss Re AG | Zurich Insurance vs. Novartis AG | Zurich Insurance vs. Swiss Life Holding | Zurich Insurance vs. UBS Group AG |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Transaction History View history of all your transactions and understand their impact on performance |