Correlation Between ING Groep and Zurich Insurance

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

By analyzing existing cross correlation between ING Groep NV and Zurich Insurance Group, you can compare the effects of market volatilities on ING Groep 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 ING Groep with a short position of Zurich Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of ING Groep and Zurich Insurance.

Diversification Opportunities for ING Groep and Zurich Insurance

-0.05

Correlation Coefficient

ING Groep  Zurich Insurance

Good diversification

The 3 months correlation between ING and Zurich is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding ING Groep NV and Zurich Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zurich Insurance and ING Groep 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 ING Groep NV 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 ING Groep i.e., ING Groep and Zurich Insurance go up and down completely randomly.

Pair Corralation between ING Groep and Zurich Insurance

Assuming the 90 days trading horizon ING Groep NV is expected to generate 1.92 times more return on investment than Zurich Insurance. However, ING Groep is 1.92 times more volatile than Zurich Insurance Group. It trades about 0.18 of its potential returns per unit of risk. Zurich Insurance Group is currently generating about -0.05 per unit of risk. If you would invest  1,664  in ING Groep NV on April 24, 2025 and sell it today you would earn a total of  291.00  from holding ING Groep NV or generate 17.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.88%
Values	Daily Returns

ING Groep NV  vs.  Zurich Insurance Group

ING Groep NV

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ING Groep NV are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, ING Groep unveiled solid returns over the last few months and may actually be approaching a breakup point.

Zurich Insurance

Risk-Adjusted Performance

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.

Pair Trading with ING Groep and Zurich Insurance

The main advantage of trading using opposite ING Groep and Zurich Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ING Groep 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.

The idea behind ING Groep NV and Zurich Insurance Group 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.