Correlation Between Zurich Insurance and X Fab
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and X Fab 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 X Fab 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 X Fab Silicon, you can compare the effects of market volatilities on Zurich Insurance and X Fab 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 X Fab. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and X Fab.
Diversification Opportunities for Zurich Insurance and X Fab
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zurich and XFB is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and X Fab Silicon in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on X Fab Silicon 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 X Fab. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of X Fab Silicon has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and X Fab go up and down completely randomly.
Pair Corralation between Zurich Insurance and X Fab
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.69 times more return on investment than X Fab. However, Zurich Insurance Group is 1.45 times less risky than X Fab. It trades about 0.08 of its potential returns per unit of risk. X Fab Silicon is currently generating about -0.1 per unit of risk. If you would invest 2,175 in Zurich Insurance Group on September 12, 2024 and sell it today you would earn a total of 785.00 from holding Zurich Insurance Group or generate 36.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. X Fab Silicon
Performance |
| Timeline |
| Zurich Insurance |
| X Fab Silicon |
Zurich Insurance and X Fab Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and X Fab
The main advantage of trading using opposite Zurich Insurance and X Fab positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, X Fab 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 X Fab will offset losses from the drop in X Fab's long position.| Zurich Insurance vs. Corsair Gaming | Zurich Insurance vs. MeVis Medical Solutions | Zurich Insurance vs. Air New Zealand | Zurich Insurance vs. SAFETY MEDICAL PROD |
| X Fab vs. Taiwan Semiconductor Manufacturing | X Fab vs. MagnaChip Semiconductor Corp | X Fab vs. ON SEMICONDUCTOR | X Fab vs. Zurich Insurance Group |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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