Correlation Between Zurich Insurance and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Deutsche Bank 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 Deutsche Bank 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 Deutsche Bank Aktiengesellschaft, you can compare the effects of market volatilities on Zurich Insurance and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Deutsche Bank.
Diversification Opportunities for Zurich Insurance and Deutsche Bank
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zurich and Deutsche is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Deutsche Bank Aktiengesellscha in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank Aktien 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank Aktien has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Deutsche Bank go up and down completely randomly.
Pair Corralation between Zurich Insurance and Deutsche Bank
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 1.17 times more return on investment than Deutsche Bank. However, Zurich Insurance is 1.17 times more volatile than Deutsche Bank Aktiengesellschaft. It trades about 0.31 of its potential returns per unit of risk. Deutsche Bank Aktiengesellschaft is currently generating about 0.07 per unit of risk. If you would invest 2,660 in Zurich Insurance Group on September 3, 2024 and sell it today you would earn a total of 360.00 from holding Zurich Insurance Group or generate 13.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Deutsche Bank Aktiengesellscha
Performance |
| Timeline |
| Zurich Insurance |
| Deutsche Bank Aktien |
Zurich Insurance and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Deutsche Bank
The main advantage of trading using opposite Zurich Insurance and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank's long position.| Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. Superior Plus Corp | Zurich Insurance vs. NMI Holdings |
| Deutsche Bank vs. WisdomTree Investments | Deutsche Bank vs. GLG LIFE TECH | Deutsche Bank vs. Strategic Investments AS | Deutsche Bank vs. SLR Investment Corp |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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