Correlation Between Zurich Insurance and Zijin Mining
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Zijin Mining 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 Zijin Mining 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 Zijin Mining Group, you can compare the effects of market volatilities on Zurich Insurance and Zijin Mining 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 Zijin Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Zijin Mining.
Diversification Opportunities for Zurich Insurance and Zijin Mining
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zurich and Zijin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Zijin Mining Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zijin Mining Group 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 Zijin Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zijin Mining Group has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Zijin Mining go up and down completely randomly.
Pair Corralation between Zurich Insurance and Zijin Mining
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 2.04 times less return on investment than Zijin Mining. But when comparing it to its historical volatility, Zurich Insurance Group is 2.12 times less risky than Zijin Mining. It trades about 0.06 of its potential returns per unit of risk. Zijin Mining Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 88.00 in Zijin Mining Group on September 3, 2024 and sell it today you would earn a total of 89.00 from holding Zijin Mining Group or generate 101.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Zijin Mining Group
Performance |
| Timeline |
| Zurich Insurance |
| Zijin Mining Group |
Zurich Insurance and Zijin Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Zijin Mining
The main advantage of trading using opposite Zurich Insurance and Zijin Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Zijin Mining 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 Zijin Mining will offset losses from the drop in Zijin Mining's long position.| Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. Superior Plus Corp | Zurich Insurance vs. NMI Holdings |
| Zijin Mining vs. ARISTOCRAT LEISURE | Zijin Mining vs. EAT WELL INVESTMENT | Zijin Mining vs. ePlay Digital | Zijin Mining vs. PennantPark 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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