Correlation Between Virtu Financial and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Virtu Financial and Gruppo Mutuionline 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 Virtu Financial and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Virtu Financial and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Virtu Financial and Gruppo Mutuionline 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 Virtu Financial with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Virtu Financial and Gruppo Mutuionline.
Diversification Opportunities for Virtu Financial and Gruppo Mutuionline
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Virtu and Gruppo is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Virtu Financial and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA and Virtu Financial 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 Virtu Financial are associated (or correlated) with Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of Virtu Financial i.e., Virtu Financial and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Virtu Financial and Gruppo Mutuionline
Assuming the 90 days horizon Virtu Financial is expected to generate 1.18 times more return on investment than Gruppo Mutuionline. However, Virtu Financial is 1.18 times more volatile than Gruppo Mutuionline SpA. It trades about -0.06 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.51 per unit of risk. If you would invest 3,460 in Virtu Financial on October 16, 2024 and sell it today you would lose (80.00) from holding Virtu Financial or give up 2.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 94.12% |
| Values | Daily Returns |
Virtu Financial vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Virtu Financial |
| Gruppo Mutuionline SpA |
Virtu Financial and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Virtu Financial and Gruppo Mutuionline
The main advantage of trading using opposite Virtu Financial and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Virtu Financial position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| Virtu Financial vs. ENVVENO MEDICAL DL 00001 | Virtu Financial vs. OBSERVE MEDICAL ASA | Virtu Financial vs. SOFI TECHNOLOGIES | Virtu Financial vs. Sunny Optical Technology |
| Gruppo Mutuionline vs. Merit Medical Systems | Gruppo Mutuionline vs. GWILLI FOOD | Gruppo Mutuionline vs. Cal Maine Foods | Gruppo Mutuionline vs. MeVis Medical Solutions |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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