Correlation Between Assicurazioni Generali and BB Seguridade
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and BB Seguridade 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 BB Seguridade 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 BB Seguridade Participacoes, you can compare the effects of market volatilities on Assicurazioni Generali and BB Seguridade 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 BB Seguridade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and BB Seguridade.
Diversification Opportunities for Assicurazioni Generali and BB Seguridade
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Assicurazioni and BBSEY is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and BB Seguridade Participacoes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BB Seguridade Partic 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 BB Seguridade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BB Seguridade Partic has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and BB Seguridade go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and BB Seguridade
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 0.66 times more return on investment than BB Seguridade. However, Assicurazioni Generali SpA is 1.52 times less risky than BB Seguridade. It trades about 0.15 of its potential returns per unit of risk. BB Seguridade Participacoes is currently generating about -0.15 per unit of risk. If you would invest 2,525 in Assicurazioni Generali SpA on August 28, 2024 and sell it today you would earn a total of 233.00 from holding Assicurazioni Generali SpA or generate 9.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. BB Seguridade Participacoes
Performance |
| Timeline |
| Assicurazioni Generali |
| BB Seguridade Partic |
Assicurazioni Generali and BB Seguridade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and BB Seguridade
The main advantage of trading using opposite Assicurazioni Generali and BB Seguridade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, BB Seguridade 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 BB Seguridade will offset losses from the drop in BB Seguridade's long position.| Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Arch Capital Group |
| BB Seguridade vs. Athene Holding | BB Seguridade vs. Athene Holding | BB Seguridade vs. Arch Capital Group |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance |