Correlation Between Creo Medical and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Creo Medical 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 Creo Medical and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Creo Medical Group and Zurich Insurance Group, you can compare the effects of market volatilities on Creo Medical 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 Creo Medical with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Creo Medical and Zurich Insurance.
Diversification Opportunities for Creo Medical and Zurich Insurance
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Creo and Zurich is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Creo Medical Group and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Creo Medical 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 Creo Medical Group 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 Creo Medical i.e., Creo Medical and Zurich Insurance go up and down completely randomly.
Pair Corralation between Creo Medical and Zurich Insurance
Assuming the 90 days trading horizon Creo Medical Group is expected to generate 5.21 times more return on investment than Zurich Insurance. However, Creo Medical is 5.21 times more volatile than Zurich Insurance Group. It trades about 0.06 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about -0.11 per unit of risk. If you would invest 1,613 in Creo Medical Group on October 25, 2024 and sell it today you would earn a total of 125.00 from holding Creo Medical Group or generate 7.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Creo Medical Group vs. Zurich Insurance Group
Performance |
| Timeline |
| Creo Medical Group |
| Zurich Insurance |
Creo Medical and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Creo Medical and Zurich Insurance
The main advantage of trading using opposite Creo Medical and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Creo Medical 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.| Creo Medical vs. Gaztransport et Technigaz | Creo Medical vs. Fonix Mobile plc | Creo Medical vs. Tatton Asset Management | Creo Medical vs. Broadcom |
| Zurich Insurance vs. Xeros Technology Group | Zurich Insurance vs. LPKF Laser Electronics | Zurich Insurance vs. Take Two Interactive Software | Zurich Insurance vs. Creo Medical 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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