Correlation Between Sportradar Group and Chubb

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

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

Diversification Opportunities for Sportradar Group and Chubb

0.07

Correlation Coefficient

Sportradar Group  Chubb

Significant diversification

The 3 months correlation between Sportradar and Chubb is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Sportradar Group AG and Chubb in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chubb and Sportradar Group 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 Sportradar Group AG are associated (or correlated) with Chubb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chubb has no effect on the direction of Sportradar Group i.e., Sportradar Group and Chubb go up and down completely randomly.

Pair Corralation between Sportradar Group and Chubb

Given the investment horizon of 90 days Sportradar Group AG is expected to generate 1.97 times more return on investment than Chubb. However, Sportradar Group is 1.97 times more volatile than Chubb. It trades about 0.07 of its potential returns per unit of risk. Chubb is currently generating about 0.04 per unit of risk. If you would invest  2,139  in Sportradar Group AG on March 2, 2025 and sell it today you would earn a total of  252.00  from holding Sportradar Group AG or generate 11.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Sportradar Group AG  vs.  Chubb

Sportradar Group

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Sportradar Group AG are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Sportradar Group exhibited solid returns over the last few months and may actually be approaching a breakup point.

Chubb

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Chubb are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, Chubb is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Sportradar Group and Chubb

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

The idea behind Sportradar Group AG and Chubb 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.

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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.