Correlation Between Zurich Insurance and IVF Hartmann
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and IVF Hartmann 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 IVF Hartmann 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 IVF Hartmann Holding, you can compare the effects of market volatilities on Zurich Insurance and IVF Hartmann 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 IVF Hartmann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and IVF Hartmann.
Diversification Opportunities for Zurich Insurance and IVF Hartmann
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zurich and IVF is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and IVF Hartmann Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IVF Hartmann Holding 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 IVF Hartmann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IVF Hartmann Holding has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and IVF Hartmann go up and down completely randomly.
Pair Corralation between Zurich Insurance and IVF Hartmann
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.72 times more return on investment than IVF Hartmann. However, Zurich Insurance Group is 1.39 times less risky than IVF Hartmann. It trades about 0.27 of its potential returns per unit of risk. IVF Hartmann Holding is currently generating about 0.13 per unit of risk. If you would invest 52,020 in Zurich Insurance Group on September 14, 2024 and sell it today you would earn a total of 2,760 from holding Zurich Insurance Group or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. IVF Hartmann Holding
Performance |
| Timeline |
| Zurich Insurance |
| IVF Hartmann Holding |
Zurich Insurance and IVF Hartmann Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and IVF Hartmann
The main advantage of trading using opposite Zurich Insurance and IVF Hartmann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, IVF Hartmann 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 IVF Hartmann will offset losses from the drop in IVF Hartmann'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 |
| IVF Hartmann vs. Adval Tech Holding | IVF Hartmann vs. Zurich Insurance Group | IVF Hartmann vs. Metall Zug AG | IVF Hartmann vs. Cicor Technologies |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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