Correlation Between FIH MOBILE and ZURICH INSURANCE
Can any of the company-specific risk be diversified away by investing in both FIH MOBILE 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 FIH MOBILE and ZURICH INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FIH MOBILE and ZURICH INSURANCE GROUP, you can compare the effects of market volatilities on FIH MOBILE 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 FIH MOBILE with a short position of ZURICH INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIH MOBILE and ZURICH INSURANCE.
Diversification Opportunities for FIH MOBILE and ZURICH INSURANCE
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between FIH and ZURICH is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding FIH MOBILE and ZURICH INSURANCE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZURICH INSURANCE and FIH MOBILE 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 FIH MOBILE 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 FIH MOBILE i.e., FIH MOBILE and ZURICH INSURANCE go up and down completely randomly.
Pair Corralation between FIH MOBILE and ZURICH INSURANCE
Assuming the 90 days trading horizon FIH MOBILE is expected to under-perform the ZURICH INSURANCE. In addition to that, FIH MOBILE is 1.49 times more volatile than ZURICH INSURANCE GROUP. It trades about -0.01 of its total potential returns per unit of risk. ZURICH INSURANCE GROUP is currently generating about 0.08 per unit of volatility. If you would invest 1,947 in ZURICH INSURANCE GROUP on November 5, 2024 and sell it today you would earn a total of 953.00 from holding ZURICH INSURANCE GROUP or generate 48.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIH MOBILE vs. ZURICH INSURANCE GROUP
Performance |
| Timeline |
| FIH MOBILE |
| ZURICH INSURANCE |
FIH MOBILE and ZURICH INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIH MOBILE and ZURICH INSURANCE
The main advantage of trading using opposite FIH MOBILE and ZURICH INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIH MOBILE 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.| FIH MOBILE vs. Clearside Biomedical | FIH MOBILE vs. Focus Home Interactive | FIH MOBILE vs. Haier Smart Home | FIH MOBILE vs. HAVERTY FURNITURE A |
| ZURICH INSURANCE vs. GigaMedia | ZURICH INSURANCE vs. Penn National Gaming | ZURICH INSURANCE vs. Apollo Medical Holdings | ZURICH INSURANCE vs. CONTAGIOUS GAMING INC |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |