Correlation Between VALORA HLDG and Zurich Invest

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

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

Diversification Opportunities for VALORA HLDG and Zurich Invest

0.0

Correlation Coefficient

VALORA HLDG  Zurich Invest

Pay attention - limited upside

The 3 months correlation between VALORA and Zurich is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VALORA HLDG OPEN 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 VALORA HLDG 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 VALORA HLDG OPEN 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 VALORA HLDG i.e., VALORA HLDG and Zurich Invest go up and down completely randomly.

Pair Corralation between VALORA HLDG and Zurich Invest

If you would invest  827.00  in Zurich Invest II on September 26, 2024 and sell it today you would earn a total of  46.00  from holding Zurich Invest II or generate 5.56% return on investment over 90 days.

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

VALORA HLDG OPEN  vs.  Zurich Invest II

VALORA HLDG OPEN

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VALORA HLDG OPEN has generated negative risk-adjusted returns adding no value to fund investors. Despite somewhat strong basic indicators, VALORA HLDG is not utilizing all of its potentials. The latest 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 latest stock price chaos, may contribute to medium-term losses for the stakeholders.

Pair Trading with VALORA HLDG and Zurich Invest

The main advantage of trading using opposite VALORA HLDG and Zurich Invest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VALORA HLDG 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 VALORA HLDG OPEN 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.