Correlation Between Assicurazioni Generali and Neinor Homes
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Neinor Homes 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 Neinor Homes 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 Neinor Homes SA, you can compare the effects of market volatilities on Assicurazioni Generali and Neinor Homes 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 Neinor Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Neinor Homes.
Diversification Opportunities for Assicurazioni Generali and Neinor Homes
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Assicurazioni and Neinor is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Neinor Homes SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neinor Homes SA 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 Neinor Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neinor Homes SA has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Neinor Homes go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Neinor Homes
Assuming the 90 days trading horizon Assicurazioni Generali is expected to generate 1.07 times less return on investment than Neinor Homes. In addition to that, Assicurazioni Generali is 1.48 times more volatile than Neinor Homes SA. It trades about 0.06 of its total potential returns per unit of risk. Neinor Homes SA is currently generating about 0.09 per unit of volatility. If you would invest 679.00 in Neinor Homes SA on September 12, 2024 and sell it today you would earn a total of 825.00 from holding Neinor Homes SA or generate 121.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.83% |
| Values | Daily Returns |
Assicurazioni Generali SpA vs. Neinor Homes SA
Performance |
| Timeline |
| Assicurazioni Generali |
| Neinor Homes SA |
Assicurazioni Generali and Neinor Homes Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Assicurazioni Generali and Neinor Homes
The main advantage of trading using opposite Assicurazioni Generali and Neinor Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Neinor Homes 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 Neinor Homes will offset losses from the drop in Neinor Homes' long position.| Assicurazioni Generali vs. WIZZ AIR HLDGUNSPADR4 | Assicurazioni Generali vs. Gol Intelligent Airlines | Assicurazioni Generali vs. Corsair Gaming | Assicurazioni Generali vs. ALTAIR RES INC |
| Neinor Homes vs. Altair Engineering | Neinor Homes vs. Fair Isaac Corp | Neinor Homes vs. Zijin Mining Group | Neinor Homes vs. KENNAMETAL INC |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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