Correlation Between Zurich Insurance and Mobilezone
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Mobilezone 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 Mobilezone 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 mobilezone ag, you can compare the effects of market volatilities on Zurich Insurance and Mobilezone 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 Mobilezone. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Mobilezone.
Diversification Opportunities for Zurich Insurance and Mobilezone
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zurich and Mobilezone is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and mobilezone ag in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on mobilezone ag 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 Mobilezone. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of mobilezone ag has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Mobilezone go up and down completely randomly.
Pair Corralation between Zurich Insurance and Mobilezone
Assuming the 90 days trading horizon Zurich Insurance is expected to generate 45.63 times less return on investment than Mobilezone. But when comparing it to its historical volatility, Zurich Insurance Group is 1.76 times less risky than Mobilezone. It trades about 0.01 of its potential returns per unit of risk. mobilezone ag is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 1,052 in mobilezone ag on October 26, 2024 and sell it today you would earn a total of 74.00 from holding mobilezone ag or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. mobilezone ag
Performance |
| Timeline |
| Zurich Insurance |
| mobilezone ag |
Zurich Insurance and Mobilezone Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Mobilezone
The main advantage of trading using opposite Zurich Insurance and Mobilezone positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Mobilezone 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 Mobilezone will offset losses from the drop in Mobilezone'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 |
| Mobilezone vs. Zurich Insurance Group | Mobilezone vs. Luzerner Kantonalbank AG | Mobilezone vs. Metall Zug AG | Mobilezone vs. Schweiter Technologies 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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