Correlation Between Xlife Sciences and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Xlife Sciences 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 Xlife Sciences and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xlife Sciences AG and Zurich Insurance Group, you can compare the effects of market volatilities on Xlife Sciences 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 Xlife Sciences with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xlife Sciences and Zurich Insurance.
Diversification Opportunities for Xlife Sciences and Zurich Insurance
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xlife and Zurich is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Xlife Sciences AG and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Xlife Sciences 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 Xlife Sciences AG 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 Xlife Sciences i.e., Xlife Sciences and Zurich Insurance go up and down completely randomly.
Pair Corralation between Xlife Sciences and Zurich Insurance
Assuming the 90 days trading horizon Xlife Sciences AG is expected to under-perform the Zurich Insurance. In addition to that, Xlife Sciences is 5.61 times more volatile than Zurich Insurance Group. It trades about -0.07 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.32 per unit of volatility. If you would invest 51,500 in Zurich Insurance Group on September 13, 2024 and sell it today you would earn a total of 3,300 from holding Zurich Insurance Group or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xlife Sciences AG vs. Zurich Insurance Group
Performance |
| Timeline |
| Xlife Sciences AG |
| Zurich Insurance |
Xlife Sciences and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xlife Sciences and Zurich Insurance
The main advantage of trading using opposite Xlife Sciences and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xlife Sciences 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.| Xlife Sciences vs. Metall Zug AG | Xlife Sciences vs. Cembra Money Bank | Xlife Sciences vs. BB Biotech AG | Xlife Sciences vs. Basellandschaftliche Kantonalbank |
| Zurich Insurance vs. Swiss Re AG | Zurich Insurance vs. Novartis AG | Zurich Insurance vs. Swiss Life Holding | Zurich Insurance vs. UBS Group 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |