Correlation Between ZURICH INSURANCE and Musti Group
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and Musti 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 Musti 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 Musti Group Oyj, you can compare the effects of market volatilities on ZURICH INSURANCE and Musti 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 Musti Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and Musti Group.
Diversification Opportunities for ZURICH INSURANCE and Musti Group
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ZURICH and Musti is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and Musti Group Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Musti Group Oyj 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 Musti Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Musti Group Oyj has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and Musti Group go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and Musti Group
Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to generate 0.57 times more return on investment than Musti Group. However, ZURICH INSURANCE GROUP is 1.76 times less risky than Musti Group. It trades about 0.16 of its potential returns per unit of risk. Musti Group Oyj is currently generating about -0.17 per unit of risk. If you would invest 2,800 in ZURICH INSURANCE GROUP on September 14, 2024 and sell it today you would earn a total of 100.00 from holding ZURICH INSURANCE GROUP or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. Musti Group Oyj
Performance |
| Timeline |
| ZURICH INSURANCE |
| Musti Group Oyj |
ZURICH INSURANCE and Musti Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and Musti Group
The main advantage of trading using opposite ZURICH INSURANCE and Musti Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, Musti 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 Musti Group will offset losses from the drop in Musti Group's long position.| ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc |
| Musti Group vs. Japan Post Insurance | Musti Group vs. Goosehead Insurance | Musti Group vs. ZURICH INSURANCE GROUP | Musti Group vs. Alaska Air 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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