Correlation Between ZURICH INSURANCE and ENSTAR GROUP
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and ENSTAR GROUP 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 ENSTAR GROUP 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 ENSTAR GROUP LTD, you can compare the effects of market volatilities on ZURICH INSURANCE and ENSTAR GROUP 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 ENSTAR GROUP. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and ENSTAR GROUP.
Diversification Opportunities for ZURICH INSURANCE and ENSTAR GROUP
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZURICH and ENSTAR is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and ENSTAR GROUP LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENSTAR GROUP LTD 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 ENSTAR GROUP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENSTAR GROUP LTD has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and ENSTAR GROUP go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and ENSTAR GROUP
Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to generate 1.51 times more return on investment than ENSTAR GROUP. However, ZURICH INSURANCE is 1.51 times more volatile than ENSTAR GROUP LTD. It trades about 0.23 of its potential returns per unit of risk. ENSTAR GROUP LTD is currently generating about -0.08 per unit of risk. If you would invest 2,760 in ZURICH INSURANCE GROUP on September 12, 2024 and sell it today you would earn a total of 160.00 from holding ZURICH INSURANCE GROUP or generate 5.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. ENSTAR GROUP LTD
Performance |
| Timeline |
| ZURICH INSURANCE |
| ENSTAR GROUP LTD |
ZURICH INSURANCE and ENSTAR GROUP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and ENSTAR GROUP
The main advantage of trading using opposite ZURICH INSURANCE and ENSTAR GROUP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, ENSTAR GROUP 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 ENSTAR GROUP will offset losses from the drop in ENSTAR GROUP's long position.| ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc |
| ENSTAR GROUP vs. ZURICH INSURANCE GROUP | ENSTAR GROUP vs. Nissan Chemical Corp | ENSTAR GROUP vs. Siamgas And Petrochemicals | ENSTAR GROUP vs. INDO RAMA SYNTHETIC |
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.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |