Correlation Between Zurich Insurance and Zwahlen Et

Can any of the company-specific risk be diversified away by investing in both Zurich Insurance and Zwahlen Et 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 Zwahlen Et 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 Zwahlen et Mayr, you can compare the effects of market volatilities on Zurich Insurance and Zwahlen Et 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 Zwahlen Et. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zurich Insurance and Zwahlen Et.

Diversification Opportunities for Zurich Insurance and Zwahlen Et

-0.48

Correlation Coefficient

Zurich Insurance  Zwahlen Et

Very good diversification

The 3 months correlation between Zurich and Zwahlen is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Zurich Insurance Group and Zwahlen et Mayr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zwahlen et Mayr 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 Zwahlen Et. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zwahlen et Mayr has no effect on the direction of Zurich Insurance i.e., Zurich Insurance and Zwahlen Et go up and down completely randomly.

Pair Corralation between Zurich Insurance and Zwahlen Et

Assuming the 90 days trading horizon Zurich Insurance Group is expected to generate 0.3 times more return on investment than Zwahlen Et. However, Zurich Insurance Group is 3.3 times less risky than Zwahlen Et. It trades about 0.01 of its potential returns per unit of risk. Zwahlen et Mayr is currently generating about -0.12 per unit of risk. If you would invest  52,400  in Zurich Insurance Group on October 16, 2024 and sell it today you would earn a total of  120.00  from holding Zurich Insurance Group or generate 0.23% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	39.66%
Values	Daily Returns

Zurich Insurance Group  vs.  Zwahlen et Mayr

Zurich Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zurich Insurance Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Zurich Insurance is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Zwahlen et Mayr

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Zwahlen et Mayr has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of abnormal performance in the last few months, the Stock's primary indicators remain fairly stable which may send shares a bit higher in February 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

Pair Trading with Zurich Insurance and Zwahlen Et

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

The idea behind Zurich Insurance Group and Zwahlen et Mayr 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.