Correlation Between Zurich Insurance and NN Group
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and NN Group 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 NN Group 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 NN Group NV, you can compare the effects of market volatilities on Zurich Insurance and NN Group 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 NN Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and NN Group.
Diversification Opportunities for Zurich Insurance and NN Group
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zurich and NNGPF is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and NN Group NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NN Group NV 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 NN Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NN Group NV has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and NN Group go up and down completely randomly.
Pair Corralation between Zurich Insurance and NN Group
Assuming the 90 days horizon Zurich Insurance Group is expected to generate 0.74 times more return on investment than NN Group. However, Zurich Insurance Group is 1.35 times less risky than NN Group. It trades about 0.26 of its potential returns per unit of risk. NN Group NV is currently generating about -0.29 per unit of risk. If you would invest 2,972 in Zurich Insurance Group on August 31, 2024 and sell it today you would earn a total of 161.00 from holding Zurich Insurance Group or generate 5.42% 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. NN Group NV
Performance |
| Timeline |
| Zurich Insurance |
| NN Group NV |
Zurich Insurance and NN Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zurich Insurance and NN Group
The main advantage of trading using opposite Zurich Insurance and NN Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, NN Group 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 NN Group will offset losses from the drop in NN Group's long position.| Zurich Insurance vs. Assicurazioni Generali SpA | Zurich Insurance vs. ageas SANV | Zurich Insurance vs. AXA SA | Zurich Insurance vs. Sampo OYJ |
| NN Group vs. Sampo Oyj | NN Group vs. ageas SANV | NN Group vs. Athene Holding | NN Group vs. Assicurazioni Generali SpA |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |