Correlation Between One Media and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both One Media 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 One Media and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between One Media iP and Zurich Insurance Group, you can compare the effects of market volatilities on One Media 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 One Media with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of One Media and Zurich Insurance.
Diversification Opportunities for One Media and Zurich Insurance
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between One and Zurich is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding One Media iP and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and One Media 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 One Media iP 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 One Media i.e., One Media and Zurich Insurance go up and down completely randomly.
Pair Corralation between One Media and Zurich Insurance
Assuming the 90 days trading horizon One Media iP is expected to generate 3.77 times more return on investment than Zurich Insurance. However, One Media is 3.77 times more volatile than Zurich Insurance Group. It trades about 0.01 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about -0.14 per unit of risk. If you would invest 425.00 in One Media iP on October 13, 2024 and sell it today you would earn a total of 0.00 from holding One Media iP or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
One Media iP vs. Zurich Insurance Group
Performance |
| Timeline |
| One Media iP |
| Zurich Insurance |
One Media and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with One Media and Zurich Insurance
The main advantage of trading using opposite One Media and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if One Media 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.| One Media vs. Various Eateries PLC | One Media vs. Synthomer plc | One Media vs. Ecclesiastical Insurance Office | One Media vs. DFS Furniture PLC |
| Zurich Insurance vs. AcadeMedia AB | Zurich Insurance vs. Liberty Media Corp | Zurich Insurance vs. One Media iP | Zurich Insurance vs. Coor Service Management |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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