Correlation Between Gruppo MutuiOnline and Mercantile Investment
Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline and Mercantile Investment 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 Gruppo MutuiOnline and Mercantile Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo MutuiOnline SpA and The Mercantile Investment, you can compare the effects of market volatilities on Gruppo MutuiOnline and Mercantile Investment 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 Gruppo MutuiOnline with a short position of Mercantile Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Mercantile Investment.
Diversification Opportunities for Gruppo MutuiOnline and Mercantile Investment
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gruppo and Mercantile is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and The Mercantile Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on The Mercantile Investment and Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA are associated (or correlated) with Mercantile Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of The Mercantile Investment has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Mercantile Investment go up and down completely randomly.
Pair Corralation between Gruppo MutuiOnline and Mercantile Investment
Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to generate 2.86 times more return on investment than Mercantile Investment. However, Gruppo MutuiOnline is 2.86 times more volatile than The Mercantile Investment. It trades about 0.02 of its potential returns per unit of risk. The Mercantile Investment is currently generating about -0.02 per unit of risk. If you would invest 3,588 in Gruppo MutuiOnline SpA on October 13, 2024 and sell it today you would earn a total of 37.00 from holding Gruppo MutuiOnline SpA or generate 1.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 49.32% |
| Values | Daily Returns |
Gruppo MutuiOnline SpA vs. The Mercantile Investment
Performance |
| Timeline |
| Gruppo MutuiOnline SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| The Mercantile Investment |
Gruppo MutuiOnline and Mercantile Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo MutuiOnline and Mercantile Investment
The main advantage of trading using opposite Gruppo MutuiOnline and Mercantile Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline position performs unexpectedly, Mercantile Investment 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 Mercantile Investment will offset losses from the drop in Mercantile Investment's long position.| Gruppo MutuiOnline vs. Liberty Media Corp | Gruppo MutuiOnline vs. Worldwide Healthcare Trust | Gruppo MutuiOnline vs. Ubisoft Entertainment | Gruppo MutuiOnline vs. Centaur Media |
| Mercantile Investment vs. SupplyMe Capital PLC | Mercantile Investment vs. SM Energy Co | Mercantile Investment vs. FuelCell Energy | Mercantile Investment vs. Grand Vision Media |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |