Correlation Between SLR Investment and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both SLR Investment and Zurich Insurance 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 SLR Investment and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SLR Investment Corp and Zurich Insurance Group, you can compare the effects of market volatilities on SLR Investment and Zurich Insurance 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 SLR Investment with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of SLR Investment and Zurich Insurance.
Diversification Opportunities for SLR Investment and Zurich Insurance
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between SLR and Zurich is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding SLR Investment Corp and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and SLR Investment 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 SLR Investment Corp are associated (or correlated) with Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of SLR Investment i.e., SLR Investment and Zurich Insurance go up and down completely randomly.
Pair Corralation between SLR Investment and Zurich Insurance
Assuming the 90 days horizon SLR Investment Corp is expected to generate 0.42 times more return on investment than Zurich Insurance. However, SLR Investment Corp is 2.36 times less risky than Zurich Insurance. It trades about 0.11 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.04 per unit of risk. If you would invest 1,586 in SLR Investment Corp on November 6, 2024 and sell it today you would earn a total of 27.00 from holding SLR Investment Corp or generate 1.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SLR Investment Corp vs. Zurich Insurance Group
Performance |
| Timeline |
| SLR Investment Corp |
| Zurich Insurance |
SLR Investment and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SLR Investment and Zurich Insurance
The main advantage of trading using opposite SLR Investment and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SLR Investment position performs unexpectedly, Zurich Insurance 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 Zurich Insurance will offset losses from the drop in Zurich Insurance's long position.| SLR Investment vs. Sumitomo Rubber Industries | SLR Investment vs. THRACE PLASTICS | SLR Investment vs. Summit Materials | SLR Investment vs. OURGAME INTHOLDL 00005 |
| Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. Berkshire Hathaway | Zurich Insurance vs. American International Group | Zurich Insurance vs. Sun Life Financial |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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