Correlation Between Summit Hotel and Zurich Insurance
Can any of the company-specific risk be diversified away by investing in both Summit Hotel 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 Summit Hotel and Zurich Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Summit Hotel Properties and Zurich Insurance Group, you can compare the effects of market volatilities on Summit Hotel 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 Summit Hotel with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Summit Hotel and Zurich Insurance.
Diversification Opportunities for Summit Hotel and Zurich Insurance
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Summit and Zurich is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Summit Hotel Properties and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and Summit Hotel 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 Summit Hotel Properties 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 Summit Hotel i.e., Summit Hotel and Zurich Insurance go up and down completely randomly.
Pair Corralation between Summit Hotel and Zurich Insurance
Considering the 90-day investment horizon Summit Hotel Properties is expected to under-perform the Zurich Insurance. But the stock apears to be less risky and, when comparing its historical volatility, Summit Hotel Properties is 1.25 times less risky than Zurich Insurance. The stock trades about -0.08 of its potential returns per unit of risk. The Zurich Insurance Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 75,015 in Zurich Insurance Group on September 9, 2025 and sell it today you would lose (3,793) from holding Zurich Insurance Group or give up 5.06% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.46% |
| Values | Daily Returns |
Summit Hotel Properties vs. Zurich Insurance Group
Performance |
| Timeline |
| Summit Hotel Properties |
| Zurich Insurance |
Summit Hotel and Zurich Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Summit Hotel and Zurich Insurance
The main advantage of trading using opposite Summit Hotel and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Summit Hotel 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.| Summit Hotel vs. CTO Realty Growth | Summit Hotel vs. Brandywine Realty Trust | Summit Hotel vs. KKR Real Estate | Summit Hotel vs. Saul Centers |
| Zurich Insurance vs. Axa SA ADR | Zurich Insurance vs. AXA SA | Zurich Insurance vs. Sumitomo Mitsui Financial | Zurich Insurance vs. AIA Group |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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