Correlation Between Assicurazioni Generali and Ageas SANV
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Ageas SANV 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 Ageas SANV 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 ageas SANV, you can compare the effects of market volatilities on Assicurazioni Generali and Ageas SANV 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 Ageas SANV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Ageas SANV.
Diversification Opportunities for Assicurazioni Generali and Ageas SANV
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Assicurazioni and Ageas is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and ageas SANV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ageas SANV 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 Ageas SANV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ageas SANV has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Ageas SANV go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Ageas SANV
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.07 times more return on investment than Ageas SANV. However, Assicurazioni Generali is 1.07 times more volatile than ageas SANV. It trades about 0.01 of its potential returns per unit of risk. ageas SANV is currently generating about -0.05 per unit of risk. If you would invest 1,411 in Assicurazioni Generali SpA on August 24, 2024 and sell it today you would earn a total of 1.00 from holding Assicurazioni Generali SpA or generate 0.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. ageas SANV
Performance |
| Timeline |
| Assicurazioni Generali |
| ageas SANV |
Assicurazioni Generali and Ageas SANV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Ageas SANV
The main advantage of trading using opposite Assicurazioni Generali and Ageas SANV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Ageas SANV 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 Ageas SANV will offset losses from the drop in Ageas SANV's long position.| Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Allianz SE | Assicurazioni Generali vs. Zurich Insurance Group |
| Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. Berkshire Hathaway | Ageas SANV vs. Allianz SE | Ageas SANV vs. Zurich Insurance 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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