Correlation Between Assicurazioni Generali and Aviva PLC
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Aviva PLC 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 Assicurazioni Generali and Aviva PLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and Aviva PLC ADR, you can compare the effects of market volatilities on Assicurazioni Generali and Aviva PLC 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 Assicurazioni Generali with a short position of Aviva PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Aviva PLC.
Diversification Opportunities for Assicurazioni Generali and Aviva PLC
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Assicurazioni and Aviva is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Aviva PLC ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aviva PLC ADR and Assicurazioni Generali 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 Assicurazioni Generali SpA are associated (or correlated) with Aviva PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aviva PLC ADR has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Aviva PLC go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Aviva PLC
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.46 times more return on investment than Aviva PLC. However, Assicurazioni Generali is 1.46 times more volatile than Aviva PLC ADR. It trades about 0.1 of its potential returns per unit of risk. Aviva PLC ADR is currently generating about 0.09 per unit of risk. If you would invest 2,041 in Assicurazioni Generali SpA on September 2, 2024 and sell it today you would earn a total of 717.00 from holding Assicurazioni Generali SpA or generate 35.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 16.39% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Aviva PLC ADR
Performance |
| Timeline |
| Assicurazioni Generali |
| Aviva PLC ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Assicurazioni Generali and Aviva PLC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Aviva PLC
The main advantage of trading using opposite Assicurazioni Generali and Aviva PLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Aviva PLC 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 Aviva PLC will offset losses from the drop in Aviva PLC's long position.| Assicurazioni Generali vs. Sampo Oyj | Assicurazioni Generali vs. ageas SANV | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. AXA SA |
| Aviva PLC vs. AXA SA | Aviva PLC vs. Assicurazioni Generali SpA | Aviva PLC vs. Athene Holding | Aviva PLC vs. ageas SANV |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |