Correlation Between Ageas SANV and Mediobanca Banca
Can any of the company-specific risk be diversified away by investing in both Ageas SANV and Mediobanca Banca 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 Ageas SANV and Mediobanca Banca into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ageas SANV and Mediobanca Banca di, you can compare the effects of market volatilities on Ageas SANV and Mediobanca Banca 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 Ageas SANV with a short position of Mediobanca Banca. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ageas SANV and Mediobanca Banca.
Diversification Opportunities for Ageas SANV and Mediobanca Banca
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ageas and Mediobanca is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding ageas SANV and Mediobanca Banca di in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mediobanca Banca and Ageas SANV 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 ageas SANV are associated (or correlated) with Mediobanca Banca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mediobanca Banca has no effect on the direction of Ageas SANV i.e., Ageas SANV and Mediobanca Banca go up and down completely randomly.
Pair Corralation between Ageas SANV and Mediobanca Banca
Assuming the 90 days horizon Ageas SANV is expected to generate 1.41 times less return on investment than Mediobanca Banca. But when comparing it to its historical volatility, ageas SANV is 1.17 times less risky than Mediobanca Banca. It trades about 0.08 of its potential returns per unit of risk. Mediobanca Banca di is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,003 in Mediobanca Banca di on September 19, 2024 and sell it today you would earn a total of 461.00 from holding Mediobanca Banca di or generate 45.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
ageas SANV vs. Mediobanca Banca di
Performance |
| Timeline |
| ageas SANV |
| Mediobanca Banca |
Ageas SANV and Mediobanca Banca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ageas SANV and Mediobanca Banca
The main advantage of trading using opposite Ageas SANV and Mediobanca Banca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ageas SANV position performs unexpectedly, Mediobanca Banca 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 Mediobanca Banca will offset losses from the drop in Mediobanca Banca's long position.| Ageas SANV vs. Assicurazioni Generali SpA | Ageas SANV vs. AXA SA | Ageas SANV vs. Sampo OYJ | Ageas SANV vs. Zurich Insurance Group |
| Mediobanca Banca vs. Morningstar Unconstrained Allocation | Mediobanca Banca vs. Bondbloxx ETF Trust | Mediobanca Banca vs. Spring Valley Acquisition | Mediobanca Banca vs. Bondbloxx ETF Trust |
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.
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