Correlation Between ZURICH INSURANCE and AM EAGLE
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and AM EAGLE 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 AM EAGLE 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 AM EAGLE OUTFITTERS, you can compare the effects of market volatilities on ZURICH INSURANCE and AM EAGLE 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 AM EAGLE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and AM EAGLE.
Diversification Opportunities for ZURICH INSURANCE and AM EAGLE
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZURICH and AFG is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and AM EAGLE OUTFITTERS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AM EAGLE OUTFITTERS 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 AM EAGLE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AM EAGLE OUTFITTERS has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and AM EAGLE go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and AM EAGLE
Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to generate 0.4 times more return on investment than AM EAGLE. However, ZURICH INSURANCE GROUP is 2.48 times less risky than AM EAGLE. It trades about 0.32 of its potential returns per unit of risk. AM EAGLE OUTFITTERS is currently generating about 0.0 per unit of risk. If you would invest 2,720 in ZURICH INSURANCE GROUP on September 1, 2024 and sell it today you would earn a total of 220.00 from holding ZURICH INSURANCE GROUP or generate 8.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. AM EAGLE OUTFITTERS
Performance |
| Timeline |
| ZURICH INSURANCE |
| AM EAGLE OUTFITTERS |
ZURICH INSURANCE and AM EAGLE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and AM EAGLE
The main advantage of trading using opposite ZURICH INSURANCE and AM EAGLE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, AM EAGLE 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 AM EAGLE will offset losses from the drop in AM EAGLE's long position.| ZURICH INSURANCE vs. SIVERS SEMICONDUCTORS AB | ZURICH INSURANCE vs. Darden Restaurants | ZURICH INSURANCE vs. Reliance Steel Aluminum | ZURICH INSURANCE vs. Q2M Managementberatung AG |
| AM EAGLE vs. AVITA Medical | AM EAGLE vs. EAT WELL INVESTMENT | AM EAGLE vs. Diamyd Medical AB | AM EAGLE vs. CompuGroup Medical SE |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| CEOs Directory Screen CEOs from public companies around the world |