Correlation Between Corporate Travel and Unipol Gruppo
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and Unipol Gruppo 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 Corporate Travel and Unipol Gruppo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and Unipol Gruppo Finanziario, you can compare the effects of market volatilities on Corporate Travel and Unipol Gruppo 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 Corporate Travel with a short position of Unipol Gruppo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and Unipol Gruppo.
Diversification Opportunities for Corporate Travel and Unipol Gruppo
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Corporate and Unipol is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and Unipol Gruppo Finanziario in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipol Gruppo Finanziario and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with Unipol Gruppo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipol Gruppo Finanziario has no effect on the direction of Corporate Travel i.e., Corporate Travel and Unipol Gruppo go up and down completely randomly.
Pair Corralation between Corporate Travel and Unipol Gruppo
Assuming the 90 days trading horizon Corporate Travel Management is expected to generate 1.4 times more return on investment than Unipol Gruppo. However, Corporate Travel is 1.4 times more volatile than Unipol Gruppo Finanziario. It trades about 0.38 of its potential returns per unit of risk. Unipol Gruppo Finanziario is currently generating about 0.4 per unit of risk. If you would invest 765.00 in Corporate Travel Management on November 5, 2024 and sell it today you would earn a total of 125.00 from holding Corporate Travel Management or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Corporate Travel Management vs. Unipol Gruppo Finanziario
Performance |
| Timeline |
| Corporate Travel Man |
| Unipol Gruppo Finanziario |
Corporate Travel and Unipol Gruppo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and Unipol Gruppo
The main advantage of trading using opposite Corporate Travel and Unipol Gruppo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, Unipol Gruppo 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 Unipol Gruppo will offset losses from the drop in Unipol Gruppo's long position.| Corporate Travel vs. AOYAMA TRADING | Corporate Travel vs. T MOBILE INCDL 00001 | Corporate Travel vs. Ribbon Communications | Corporate Travel vs. T Mobile |
| Unipol Gruppo vs. ALEFARM BREWING DK 05 | Unipol Gruppo vs. OFFICE DEPOT | Unipol Gruppo vs. Aedas Homes SA | Unipol Gruppo vs. WIMFARM SA EO |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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