Correlation Between Assicurazioni Generali and Mapfre SA
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Mapfre SA 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 Mapfre SA 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 Mapfre SA ADR, you can compare the effects of market volatilities on Assicurazioni Generali and Mapfre SA 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 Mapfre SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Mapfre SA.
Diversification Opportunities for Assicurazioni Generali and Mapfre SA
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Assicurazioni and Mapfre is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Mapfre SA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mapfre SA 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 Mapfre SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mapfre SA ADR has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Mapfre SA go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Mapfre SA
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to generate 0.29 times more return on investment than Mapfre SA. However, Assicurazioni Generali SpA is 3.5 times less risky than Mapfre SA. It trades about 0.07 of its potential returns per unit of risk. Mapfre SA ADR is currently generating about -0.07 per unit of risk. If you would invest 1,427 in Assicurazioni Generali SpA on September 19, 2024 and sell it today you would earn a total of 23.00 from holding Assicurazioni Generali SpA or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Mapfre SA ADR
Performance |
| Timeline |
| Assicurazioni Generali |
| Mapfre SA ADR |
Assicurazioni Generali and Mapfre SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Mapfre SA
The main advantage of trading using opposite Assicurazioni Generali and Mapfre SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Mapfre SA 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 Mapfre SA will offset losses from the drop in Mapfre SA's long position.| Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. AXA SA |
| Mapfre SA vs. ageas SANV | Mapfre SA vs. Enagas SA | Mapfre SA vs. Assicurazioni Generali SpA | Mapfre SA vs. Sampo OYJ |
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 Stocks Directory module to find actively traded stocks across global markets.
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