Correlation Between ZURICH INSURANCE and WillScot Mobile
Can any of the company-specific risk be diversified away by investing in both ZURICH INSURANCE and WillScot Mobile 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 WillScot Mobile 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 WillScot Mobile Mini, you can compare the effects of market volatilities on ZURICH INSURANCE and WillScot Mobile 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 WillScot Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of ZURICH INSURANCE and WillScot Mobile.
Diversification Opportunities for ZURICH INSURANCE and WillScot Mobile
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ZURICH and WillScot is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding ZURICH INSURANCE GROUP and WillScot Mobile Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WillScot Mobile Mini 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 WillScot Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WillScot Mobile Mini has no effect on the direction of ZURICH INSURANCE i.e., ZURICH INSURANCE and WillScot Mobile go up and down completely randomly.
Pair Corralation between ZURICH INSURANCE and WillScot Mobile
Assuming the 90 days trading horizon ZURICH INSURANCE is expected to generate 1.04 times less return on investment than WillScot Mobile. But when comparing it to its historical volatility, ZURICH INSURANCE GROUP is 3.08 times less risky than WillScot Mobile. It trades about 0.36 of its potential returns per unit of risk. WillScot Mobile Mini is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,320 in WillScot Mobile Mini on September 5, 2024 and sell it today you would earn a total of 280.00 from holding WillScot Mobile Mini or generate 8.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
ZURICH INSURANCE GROUP vs. WillScot Mobile Mini
Performance |
| Timeline |
| ZURICH INSURANCE |
| WillScot Mobile Mini |
ZURICH INSURANCE and WillScot Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ZURICH INSURANCE and WillScot Mobile
The main advantage of trading using opposite ZURICH INSURANCE and WillScot Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ZURICH INSURANCE position performs unexpectedly, WillScot Mobile 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 WillScot Mobile will offset losses from the drop in WillScot Mobile's long position.| ZURICH INSURANCE vs. COMMERCIAL VEHICLE | ZURICH INSURANCE vs. VIRGIN WINES UK | ZURICH INSURANCE vs. NAKED WINES PLC | ZURICH INSURANCE vs. ARROW ELECTRONICS |
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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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