Correlation Between MAGNUM MINING and ZURICH INSURANCE
Can any of the company-specific risk be diversified away by investing in both MAGNUM MINING 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 MAGNUM MINING and ZURICH INSURANCE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAGNUM MINING EXP and ZURICH INSURANCE GROUP, you can compare the effects of market volatilities on MAGNUM MINING 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 MAGNUM MINING with a short position of ZURICH INSURANCE. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAGNUM MINING and ZURICH INSURANCE.
Diversification Opportunities for MAGNUM MINING and ZURICH INSURANCE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MAGNUM and ZURICH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding MAGNUM MINING EXP and ZURICH INSURANCE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZURICH INSURANCE and MAGNUM MINING 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 MAGNUM MINING EXP 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 MAGNUM MINING i.e., MAGNUM MINING and ZURICH INSURANCE go up and down completely randomly.
Pair Corralation between MAGNUM MINING and ZURICH INSURANCE
If you would invest 2,720 in ZURICH INSURANCE GROUP on September 1, 2024 and sell it today you would earn a total of 220.00 from holding ZURICH INSURANCE GROUP or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAGNUM MINING EXP vs. ZURICH INSURANCE GROUP
Performance |
| Timeline |
| MAGNUM MINING EXP |
| ZURICH INSURANCE |
MAGNUM MINING and ZURICH INSURANCE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAGNUM MINING and ZURICH INSURANCE
The main advantage of trading using opposite MAGNUM MINING and ZURICH INSURANCE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAGNUM MINING 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.| MAGNUM MINING vs. SIVERS SEMICONDUCTORS AB | MAGNUM MINING vs. Darden Restaurants | MAGNUM MINING vs. Reliance Steel Aluminum | MAGNUM MINING vs. Q2M Managementberatung AG |
| ZURICH INSURANCE vs. SIVERS SEMICONDUCTORS AB | ZURICH INSURANCE vs. Darden Restaurants | ZURICH INSURANCE vs. Reliance Steel Aluminum | ZURICH INSURANCE vs. Q2M Managementberatung 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |