Correlation Between Zurich Insurance and Brixmor Property
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Brixmor Property 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 Brixmor Property 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 Brixmor Property Group, you can compare the effects of market volatilities on Zurich Insurance and Brixmor Property 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 Brixmor Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Brixmor Property.
Diversification Opportunities for Zurich Insurance and Brixmor Property
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zurich and Brixmor is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Brixmor Property Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brixmor Property 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 Brixmor Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brixmor Property has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Brixmor Property go up and down completely randomly.
Pair Corralation between Zurich Insurance and Brixmor Property
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 1.22 times less return on investment than Brixmor Property. In addition to that, Zurich Insurance is 1.38 times more volatile than Brixmor Property Group. It trades about 0.07 of its total potential returns per unit of risk. Brixmor Property Group is currently generating about 0.12 per unit of volatility. If you would invest 1,854 in Brixmor Property Group on September 14, 2024 and sell it today you would earn a total of 906.00 from holding Brixmor Property Group or generate 48.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Brixmor Property Group
Performance |
| Timeline |
| Zurich Insurance |
| Brixmor Property |
Zurich Insurance and Brixmor Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Brixmor Property
The main advantage of trading using opposite Zurich Insurance and Brixmor Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Brixmor Property 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 Brixmor Property will offset losses from the drop in Brixmor Property'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 |
| Brixmor Property vs. Penta Ocean Construction Co | Brixmor Property vs. Daito Trust Construction | Brixmor Property vs. Perseus Mining Limited | Brixmor Property vs. Sumitomo Mitsui Construction |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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