Correlation Between Global Ship and Gruppo Mutuionline

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Can any of the company-specific risk be diversified away by investing in both Global Ship 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 Global Ship and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Ship Lease and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Global Ship 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 Global Ship with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Ship and Gruppo Mutuionline.

Diversification Opportunities for Global Ship and Gruppo Mutuionline

GlobalGruppoDiversified AwayGlobalGruppoDiversified Away100%
-0.46
  Correlation Coefficient

Very good diversification

The 3 months correlation between Global and Gruppo is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global Ship Lease 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 Global Ship 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 Global Ship Lease 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 Global Ship i.e., Global Ship and Gruppo Mutuionline go up and down completely randomly.

Pair Corralation between Global Ship and Gruppo Mutuionline

Assuming the 90 days horizon Global Ship is expected to generate 1.04 times less return on investment than Gruppo Mutuionline. But when comparing it to its historical volatility, Global Ship Lease is 1.1 times less risky than Gruppo Mutuionline. It trades about 0.04 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  2,714  in Gruppo Mutuionline SpA on November 26, 2024 and sell it today you would earn a total of  826.00  from holding Gruppo Mutuionline SpA or generate 30.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy99.8%
ValuesDaily Returns

Global Ship Lease  vs.  Gruppo Mutuionline SpA

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -5051015
JavaScript chart by amCharts 3.21.1537H MNL
       Timeline  
Global Ship Lease 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Global Ship Lease are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Global Ship may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2020.52121.522
Gruppo Mutuionline SpA 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Gruppo Mutuionline SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Gruppo Mutuionline is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb34353637383940

Global Ship and Gruppo Mutuionline Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.95-3.71-2.47-1.220.011.232.473.724.97 0.050.100.15
JavaScript chart by amCharts 3.21.1537H MNL
       Returns  

Pair Trading with Global Ship and Gruppo Mutuionline

The main advantage of trading using opposite Global Ship and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Ship 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.
The idea behind Global Ship Lease and Gruppo Mutuionline SpA 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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