Correlation Between Zurich Insurance and Gestamp Automocin
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Gestamp Automocin 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 Zurich Insurance and Gestamp Automocin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zurich Insurance Group and Gestamp Automocin SA, you can compare the effects of market volatilities on Zurich Insurance and Gestamp Automocin 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 Zurich Insurance with a short position of Gestamp Automocin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Gestamp Automocin.
Diversification Opportunities for Zurich Insurance and Gestamp Automocin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Zurich and Gestamp is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Gestamp Automocin SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gestamp Automocin and Zurich Insurance 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 Zurich Insurance Group are associated (or correlated) with Gestamp Automocin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gestamp Automocin has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Gestamp Automocin go up and down completely randomly.
Pair Corralation between Zurich Insurance and Gestamp Automocin
If you would invest 2,740 in Zurich Insurance Group on September 13, 2024 and sell it today you would earn a total of 280.00 from holding Zurich Insurance Group or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Zurich Insurance Group vs. Gestamp Automocin SA
Performance |
| Timeline |
| Zurich Insurance |
| Gestamp Automocin |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zurich Insurance and Gestamp Automocin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Gestamp Automocin
The main advantage of trading using opposite Zurich Insurance and Gestamp Automocin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Gestamp Automocin 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 Gestamp Automocin will offset losses from the drop in Gestamp Automocin's long position.| Zurich Insurance vs. Superior Plus Corp | Zurich Insurance vs. SIVERS SEMICONDUCTORS AB | Zurich Insurance vs. CHINA HUARONG ENERHD 50 | Zurich Insurance vs. NORDIC HALIBUT AS |
| Gestamp Automocin vs. Axcelis Technologies | Gestamp Automocin vs. SOFI TECHNOLOGIES | Gestamp Automocin vs. Japan Asia Investment | Gestamp Automocin vs. CDL INVESTMENT |
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.
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