Correlation Between Swiss Re and SCOR SE
Can any of the company-specific risk be diversified away by investing in both Swiss Re and SCOR SE 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 Swiss Re and SCOR SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Re AG and SCOR SE, you can compare the effects of market volatilities on Swiss Re and SCOR SE 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 Swiss Re with a short position of SCOR SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Re and SCOR SE.
Diversification Opportunities for Swiss Re and SCOR SE
Weak diversification
The 3 months correlation between Swiss and SCOR is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Re AG and SCOR SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SCOR SE and Swiss Re 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 Swiss Re AG are associated (or correlated) with SCOR SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SCOR SE has no effect on the direction of Swiss Re i.e., Swiss Re and SCOR SE go up and down completely randomly.
Pair Corralation between Swiss Re and SCOR SE
Assuming the 90 days trading horizon Swiss Re AG is expected to generate 0.7 times more return on investment than SCOR SE. However, Swiss Re AG is 1.42 times less risky than SCOR SE. It trades about 0.08 of its potential returns per unit of risk. SCOR SE is currently generating about 0.03 per unit of risk. If you would invest 2,104 in Swiss Re AG on November 5, 2024 and sell it today you would earn a total of 1,616 from holding Swiss Re AG or generate 76.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Swiss Re AG vs. SCOR SE
Performance |
| Timeline |
| Swiss Re AG |
| SCOR SE |
Swiss Re and SCOR SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swiss Re and SCOR SE
The main advantage of trading using opposite Swiss Re and SCOR SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Re position performs unexpectedly, SCOR SE 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 SCOR SE will offset losses from the drop in SCOR SE's long position.| Swiss Re vs. DAIDO METAL TD | Swiss Re vs. GREENX METALS LTD | Swiss Re vs. AEON METALS LTD | Swiss Re vs. Singapore Telecommunications Limited |
| SCOR SE vs. SIDETRADE EO 1 | SCOR SE vs. FAST RETAIL ADR | SCOR SE vs. Renesas Electronics | SCOR SE vs. KIMBALL ELECTRONICS |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |