Correlation Between Zurich Insurance and Allianz SE
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Allianz SE 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 Allianz SE 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 Allianz SE ADR, you can compare the effects of market volatilities on Zurich Insurance and Allianz SE 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 Allianz SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Allianz SE.
Diversification Opportunities for Zurich Insurance and Allianz SE
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zurich and Allianz is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Allianz SE ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allianz SE ADR 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 Allianz SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allianz SE ADR has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Allianz SE go up and down completely randomly.
Pair Corralation between Zurich Insurance and Allianz SE
If you would invest 3,019 in Zurich Insurance Group on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Zurich Insurance Group or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Zurich Insurance Group vs. Allianz SE ADR
Performance |
| Timeline |
| Zurich Insurance |
| Allianz SE ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Zurich Insurance and Allianz SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and Allianz SE
The main advantage of trading using opposite Zurich Insurance and Allianz SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Allianz SE 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 Allianz SE will offset losses from the drop in Allianz SE's long position.| Zurich Insurance vs. Assicurazioni Generali SpA | Zurich Insurance vs. ageas SANV | Zurich Insurance vs. AXA SA | Zurich Insurance vs. Sampo OYJ |
| Allianz SE vs. Allianz SE | Allianz SE vs. Muenchener Rueckver Ges | Allianz SE vs. Zurich Insurance Group | Allianz SE vs. Legal General Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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