Correlation Between Auction Technology and Gruppo MutuiOnline
Can any of the company-specific risk be diversified away by investing in both Auction Technology and Gruppo MutuiOnline 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 Auction Technology and Gruppo MutuiOnline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Auction Technology Group and Gruppo MutuiOnline SpA, you can compare the effects of market volatilities on Auction Technology and Gruppo MutuiOnline 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 Auction Technology with a short position of Gruppo MutuiOnline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Auction Technology and Gruppo MutuiOnline.
Diversification Opportunities for Auction Technology and Gruppo MutuiOnline
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Auction and Gruppo is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Auction Technology Group and Gruppo MutuiOnline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo MutuiOnline SpA and Auction Technology 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 Auction Technology Group are associated (or correlated) with Gruppo MutuiOnline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo MutuiOnline SpA has no effect on the direction of Auction Technology i.e., Auction Technology and Gruppo MutuiOnline go up and down completely randomly.
Pair Corralation between Auction Technology and Gruppo MutuiOnline
Assuming the 90 days trading horizon Auction Technology is expected to generate 1.47 times less return on investment than Gruppo MutuiOnline. In addition to that, Auction Technology is 1.08 times more volatile than Gruppo MutuiOnline SpA. It trades about 0.16 of its total potential returns per unit of risk. Gruppo MutuiOnline SpA is currently generating about 0.25 per unit of volatility. If you would invest 3,625 in Gruppo MutuiOnline SpA on November 7, 2024 and sell it today you would earn a total of 165.00 from holding Gruppo MutuiOnline SpA or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.13% |
| Values | Daily Returns |
Auction Technology Group vs. Gruppo MutuiOnline SpA
Performance |
| Timeline |
| Auction Technology |
| Gruppo MutuiOnline SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Auction Technology and Gruppo MutuiOnline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Auction Technology and Gruppo MutuiOnline
The main advantage of trading using opposite Auction Technology and Gruppo MutuiOnline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Auction Technology position performs unexpectedly, Gruppo MutuiOnline 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 Gruppo MutuiOnline will offset losses from the drop in Gruppo MutuiOnline's long position.| Auction Technology vs. Alfa Financial Software | Auction Technology vs. Ashtead Technology Holdings | Auction Technology vs. Dairy Farm International | Auction Technology vs. URU Metals |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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