Correlation Between Fidelity National and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Fidelity National and Zurich Insurance 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 Fidelity National and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity National Information and Zurich Insurance Group, you can compare the effects of market volatilities on Fidelity National and Zurich Insurance 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 Fidelity National with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity National and Zurich Insurance.
Diversification Opportunities for Fidelity National and Zurich Insurance
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Fidelity and Zurich is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity National Information and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Fidelity National 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 Fidelity National Information are associated (or correlated) with Zurich Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zurich Insurance has no effect on the direction of Fidelity National i.e., Fidelity National and Zurich Insurance go up and down completely randomly.
Pair Corralation between Fidelity National and Zurich Insurance
Assuming the 90 days trading horizon Fidelity National Information is expected to under-perform the Zurich Insurance. In addition to that, Fidelity National is 1.13 times more volatile than Zurich Insurance Group. It trades about -0.05 of its total potential returns per unit of risk. Zurich Insurance Group is currently generating about 0.1 per unit of volatility. If you would invest 2,800 in Zurich Insurance Group on December 30, 2024 and sell it today you would earn a total of 420.00 from holding Zurich Insurance Group or generate 15.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Fidelity National Information vs. Zurich Insurance Group
Performance |
Timeline |
Fidelity National |
Zurich Insurance |
Fidelity National and Zurich Insurance Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Fidelity National and Zurich Insurance
The main advantage of trading using opposite Fidelity National and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity National position performs unexpectedly, Zurich Insurance 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 Insurance will offset losses from the drop in Zurich Insurance's long position.Fidelity National vs. Hyster Yale Materials Handling | Fidelity National vs. The Yokohama Rubber | Fidelity National vs. THRACE PLASTICS | Fidelity National vs. Sumitomo Rubber Industries |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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