Correlation Between ZURICH INSURANCE and DFDS AS

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and DFDS AS 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 DFDS AS 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 DFDS AS, you can compare the effects of market volatilities on ZURICH INSURANCE and DFDS AS 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 DFDS AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and DFDS AS.

Diversification Opportunities for ZURICH INSURANCE and DFDS AS

-0.64
  Correlation Coefficient

Excellent diversification

The 3 months correlation between ZURICH and DFDS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and DFDS AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DFDS AS 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 DFDS AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DFDS AS has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and DFDS AS go up and down completely randomly.

Pair Corralation between ZURICH INSURANCE and DFDS AS

Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to under-perform the DFDS AS. But the stock apears to be less risky and, when comparing its historical volatility, ZURICH INSURANCE GROUP is 2.98 times less risky than DFDS AS. The stock trades about -0.26 of its potential returns per unit of risk. The DFDS AS is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest  1,901  in DFDS AS on October 7, 2024 and sell it today you would lose (74.00) from holding DFDS AS or give up 3.89% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

ZURICH INSURANCE GROUP  vs.  DFDS AS

 Performance 
       Timeline  
ZURICH INSURANCE 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in ZURICH INSURANCE GROUP are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, ZURICH INSURANCE is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
DFDS AS 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days DFDS AS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

ZURICH INSURANCE and DFDS AS Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with ZURICH INSURANCE and DFDS AS

The main advantage of trading using opposite ZURICH INSURANCE and DFDS AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, DFDS AS 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 DFDS AS will offset losses from the drop in DFDS AS's long position.
The idea behind ZURICH INSURANCE GROUP and DFDS AS pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

Other Complementary Tools

Odds Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Money Managers
Screen money managers from public funds and ETFs managed around the world
Alpha Finder
Use alpha and beta coefficients to find investment opportunities after accounting for the risk
Equity Valuation
Check real value of public entities based on technical and fundamental data