Correlation Between Zurich Insurance and Fast Retailing
Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Fast Retailing 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 Fast Retailing 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 Fast Retailing Co, you can compare the effects of market volatilities on Zurich Insurance and Fast Retailing 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 Fast Retailing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Fast Retailing.
Diversification Opportunities for Zurich Insurance and Fast Retailing
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zurich and Fast is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Fast Retailing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fast Retailing 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 Fast Retailing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fast Retailing has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Fast Retailing go up and down completely randomly.
Pair Corralation between Zurich Insurance and Fast Retailing
Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.95 times more return on investment than Fast Retailing. However, Zurich Insurance Group is 1.05 times less risky than Fast Retailing. It trades about 0.07 of its potential returns per unit of risk. Fast Retailing Co is currently generating about 0.06 per unit of risk. If you would invest 1,844 in Zurich Insurance Group on December 4, 2024 and sell it today you would earn a total of 1,356 from holding Zurich Insurance Group or generate 73.54% 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. Fast Retailing Co
Performance |
Timeline |
Zurich Insurance |
Fast Retailing |
Zurich Insurance and Fast Retailing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zurich Insurance and Fast Retailing
The main advantage of trading using opposite Zurich Insurance and Fast Retailing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zurich Insurance position performs unexpectedly, Fast Retailing 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 Fast Retailing will offset losses from the drop in Fast Retailing's long position.Zurich Insurance vs. ADRIATIC METALS LS 013355 | Zurich Insurance vs. Xinhua Winshare Publishing | Zurich Insurance vs. DeVry Education Group | Zurich Insurance vs. ARDAGH METAL PACDL 0001 |
Fast Retailing vs. Columbia Sportswear | Fast Retailing vs. TRAVEL LEISURE DL 01 | Fast Retailing vs. LG Display Co | Fast Retailing vs. Plastic Omnium |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |