Correlation Between ZURICH INSURANCE and Apple
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and Apple 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 Apple 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 Apple Inc, you can compare the effects of market volatilities on ZURICH INSURANCE and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and Apple.
Diversification Opportunities for ZURICH INSURANCE and Apple
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ZURICH and Apple is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and Apple go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and Apple
Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to generate 0.86 times more return on investment than Apple. However, ZURICH INSURANCE GROUP is 1.17 times less risky than Apple. It trades about 0.23 of its potential returns per unit of risk. Apple Inc is currently generating about 0.1 per unit of risk. If you would invest 2,760 in ZURICH INSURANCE GROUP on August 28, 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 | 95.45% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. Apple Inc
Performance |
| Timeline |
| ZURICH INSURANCE |
| Apple Inc |
ZURICH INSURANCE and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and Apple
The main advantage of trading using opposite ZURICH INSURANCE and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| ZURICH INSURANCE vs. ALTAIR RES INC | ZURICH INSURANCE vs. Ryanair Holdings plc | ZURICH INSURANCE vs. Evolution Mining Limited | ZURICH INSURANCE vs. ADRIATIC METALS LS 013355 |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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