Correlation Between ZURICH INSURANCE and Winnebago Industries
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and Winnebago Industries 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 Winnebago Industries 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 Winnebago Industries, you can compare the effects of market volatilities on ZURICH INSURANCE and Winnebago Industries 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 Winnebago Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and Winnebago Industries.
Diversification Opportunities for ZURICH INSURANCE and Winnebago Industries
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between ZURICH and Winnebago is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and Winnebago Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winnebago Industries 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 Winnebago Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winnebago Industries has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and Winnebago Industries go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and Winnebago Industries
Assuming the 90 days trading horizon ZURICH INSURANCE GROUP is expected to generate 0.5 times more return on investment than Winnebago Industries. However, ZURICH INSURANCE GROUP is 2.02 times less risky than Winnebago Industries. It trades about 0.06 of its potential returns per unit of risk. Winnebago Industries is currently generating about 0.0 per unit of risk. If you would invest 2,880 in ZURICH INSURANCE GROUP on November 8, 2024 and sell it today you would earn a total of 40.00 from holding ZURICH INSURANCE GROUP or generate 1.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. Winnebago Industries
Performance |
| Timeline |
| ZURICH INSURANCE |
| Winnebago Industries |
ZURICH INSURANCE and Winnebago Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and Winnebago Industries
The main advantage of trading using opposite ZURICH INSURANCE and Winnebago Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, Winnebago Industries 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 Winnebago Industries will offset losses from the drop in Winnebago Industries' long position.| ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc | ZURICH INSURANCE vs. Apple Inc |
| Winnebago Industries vs. Harley Davidson | Winnebago Industries vs. BRP Inc | Winnebago Industries vs. Polaris | Winnebago Industries vs. Fox Factory Holding |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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