Correlation Between SNB KASSAZINSSA and Zurich Invest

Can any of the company-specific risk be diversified away by investing in both SNB KASSAZINSSA and Zurich Invest 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 SNB KASSAZINSSA and Zurich Invest into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SNB KASSAZINSSA 10J and Zurich Invest II, you can compare the effects of market volatilities on SNB KASSAZINSSA and Zurich Invest 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 SNB KASSAZINSSA with a short position of Zurich Invest. Check out your portfolio center. Please also check ongoing floating volatility patterns of SNB KASSAZINSSA and Zurich Invest.

Diversification Opportunities for SNB KASSAZINSSA and Zurich Invest

0.0

Correlation Coefficient

SNB KASSAZINSSA  Zurich Invest

Pay attention - limited upside

The 3 months correlation between SNB and Zurich is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding SNB KASSAZINSSA 10J and Zurich Invest II in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Invest II and SNB KASSAZINSSA 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 SNB KASSAZINSSA 10J are associated (or correlated) with Zurich Invest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Invest II has no effect on the direction of SNB KASSAZINSSA i.e., SNB KASSAZINSSA and Zurich Invest go up and down completely randomly.

Pair Corralation between SNB KASSAZINSSA and Zurich Invest

If you would invest (100.00) in SNB KASSAZINSSA 10J on October 14, 2024 and sell it today you would earn a total of  100.00  from holding SNB KASSAZINSSA 10J or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

SNB KASSAZINSSA 10J  vs.  Zurich Invest II

SNB KASSAZINSSA 10J

Risk-Adjusted Performance

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Very Weak

Over the last 90 days SNB KASSAZINSSA 10J has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward-looking signals, SNB KASSAZINSSA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Zurich Invest II

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zurich Invest II has generated negative risk-adjusted returns adding no value to fund investors. Even with relatively steady forward-looking indicators, Zurich Invest is not utilizing all of its potentials. The current stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with SNB KASSAZINSSA and Zurich Invest

The main advantage of trading using opposite SNB KASSAZINSSA and Zurich Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SNB KASSAZINSSA position performs unexpectedly, Zurich Invest 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 Zurich Invest will offset losses from the drop in Zurich Invest's long position.

The idea behind SNB KASSAZINSSA 10J and Zurich Invest II pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.