Correlation Between Assicurazioni Generali and American International
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and American International 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 American International 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 American International Group, you can compare the effects of market volatilities on Assicurazioni Generali and American International 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 American International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and American International.
Diversification Opportunities for Assicurazioni Generali and American International
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Assicurazioni and American is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and American International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on American International 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 American International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of American International has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and American International go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and American International
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 1.37 times more return on investment than American International. However, Assicurazioni Generali is 1.37 times more volatile than American International Group. It trades about 0.01 of its potential returns per unit of risk. American International Group is currently generating about -0.08 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. American International Group
Performance |
| Timeline |
| Assicurazioni Generali |
| American International |
Assicurazioni Generali and American International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and American International
The main advantage of trading using opposite Assicurazioni Generali and American International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, American International 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 American International will offset losses from the drop in American International's long position.| Assicurazioni Generali vs. AXA SA | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Arch Capital Group |
| American International vs. Axa Equitable Holdings | American International vs. Arch Capital Group | American International vs. Old Republic International | American International vs. Sun Life Financial |
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
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |