Correlation Between Zurich Insurance and Julius Baer
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Julius Baer 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 Julius Baer 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 Julius Baer Gruppe, you can compare the effects of market volatilities on Zurich Insurance and Julius Baer 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 Julius Baer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Julius Baer.
Diversification Opportunities for Zurich Insurance and Julius Baer
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zurich and Julius is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Julius Baer Gruppe in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Julius Baer Gruppe 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 Julius Baer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Julius Baer Gruppe has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Julius Baer go up and down completely randomly.
Pair Corralation between Zurich Insurance and Julius Baer
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 5.69 times less return on investment than Julius Baer. But when comparing it to its historical volatility, Zurich Insurance Group is 1.04 times less risky than Julius Baer. It trades about 0.08 of its potential returns per unit of risk. Julius Baer Gruppe is currently generating about 0.43 of returns per unit of risk over similar time horizon. If you would invest 5,842 in Julius Baer Gruppe on November 4, 2024 and sell it today you would earn a total of 588.00 from holding Julius Baer Gruppe or generate 10.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Julius Baer Gruppe
Performance |
| Timeline |
| Zurich Insurance |
| Julius Baer Gruppe |
Zurich Insurance and Julius Baer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Julius Baer
The main advantage of trading using opposite Zurich Insurance and Julius Baer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Julius Baer 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 Julius Baer will offset losses from the drop in Julius Baer's long position.| Zurich Insurance vs. Swiss Re AG | Zurich Insurance vs. Novartis AG | Zurich Insurance vs. Swiss Life Holding | Zurich Insurance vs. UBS Group AG |
| Julius Baer vs. Bachem Holding AG | Julius Baer vs. Kudelski | Julius Baer vs. Alpine Select AG | Julius Baer vs. BB Biotech AG |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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