Correlation Between Sancus Lending and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Sancus Lending 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 Sancus Lending and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sancus Lending Group and Zurich Insurance Group, you can compare the effects of market volatilities on Sancus Lending 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 Sancus Lending with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sancus Lending and Zurich Insurance.
Diversification Opportunities for Sancus Lending and Zurich Insurance
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Sancus and Zurich is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Sancus Lending 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 Sancus Lending 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 Sancus Lending 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 Sancus Lending i.e., Sancus Lending and Zurich Insurance go up and down completely randomly.
Pair Corralation between Sancus Lending and Zurich Insurance
Assuming the 90 days trading horizon Sancus Lending Group is expected to generate 6.49 times more return on investment than Zurich Insurance. However, Sancus Lending is 6.49 times more volatile than Zurich Insurance Group. It trades about 0.16 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.24 per unit of risk. If you would invest 45.00 in Sancus Lending Group on November 27, 2024 and sell it today you would earn a total of 10.00 from holding Sancus Lending Group or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sancus Lending Group vs. Zurich Insurance Group
Performance |
| Timeline |
| Sancus Lending Group |
| Zurich Insurance |
Sancus Lending and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sancus Lending and Zurich Insurance
The main advantage of trading using opposite Sancus Lending and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sancus Lending 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.| Sancus Lending vs. Batm Advanced Communications | Sancus Lending vs. Cairo Communication SpA | Sancus Lending vs. Team Internet Group | Sancus Lending vs. Bigblu Broadband PLC |
| Zurich Insurance vs. Ion Beam Applications | Zurich Insurance vs. Check Point Software | Zurich Insurance vs. Logitech International SA | Zurich Insurance vs. Take Two Interactive Software |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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