Correlation Between Zurich Insurance and ATRESMEDIA
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and ATRESMEDIA 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 ATRESMEDIA 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 ATRESMEDIA, you can compare the effects of market volatilities on Zurich Insurance and ATRESMEDIA 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 ATRESMEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and ATRESMEDIA.
Diversification Opportunities for Zurich Insurance and ATRESMEDIA
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Zurich and ATRESMEDIA is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and ATRESMEDIA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATRESMEDIA 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 ATRESMEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATRESMEDIA has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and ATRESMEDIA go up and down completely randomly.
Pair Corralation between Zurich Insurance and ATRESMEDIA
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 13.48 times less return on investment than ATRESMEDIA. But when comparing it to its historical volatility, Zurich Insurance Group is 1.18 times less risky than ATRESMEDIA. It trades about 0.01 of its potential returns per unit of risk. ATRESMEDIA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 438.00 in ATRESMEDIA on October 15, 2024 and sell it today you would earn a total of 7.00 from holding ATRESMEDIA or generate 1.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. ATRESMEDIA
Performance |
| Timeline |
| Zurich Insurance |
| ATRESMEDIA |
Zurich Insurance and ATRESMEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and ATRESMEDIA
The main advantage of trading using opposite Zurich Insurance and ATRESMEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, ATRESMEDIA 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 ATRESMEDIA will offset losses from the drop in ATRESMEDIA's long position.| Zurich Insurance vs. Kingdee International Software | Zurich Insurance vs. Direct Line Insurance | Zurich Insurance vs. SBI Insurance Group | Zurich Insurance vs. OPERA SOFTWARE |
| ATRESMEDIA vs. Zurich Insurance Group | ATRESMEDIA vs. Goosehead Insurance | ATRESMEDIA vs. UNIQA INSURANCE GR | ATRESMEDIA vs. Vienna 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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