Correlation Between Carlson Investments and UniCredit SpA
Can any of the company-specific risk be diversified away by investing in both Carlson Investments and UniCredit SpA 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 Carlson Investments and UniCredit SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carlson Investments SA and UniCredit SpA, you can compare the effects of market volatilities on Carlson Investments and UniCredit SpA 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 Carlson Investments with a short position of UniCredit SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlson Investments and UniCredit SpA.
Diversification Opportunities for Carlson Investments and UniCredit SpA
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Carlson and UniCredit is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Carlson Investments SA and UniCredit SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UniCredit SpA and Carlson Investments 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 Carlson Investments SA are associated (or correlated) with UniCredit SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UniCredit SpA has no effect on the direction of Carlson Investments i.e., Carlson Investments and UniCredit SpA go up and down completely randomly.
Pair Corralation between Carlson Investments and UniCredit SpA
Assuming the 90 days trading horizon Carlson Investments SA is expected to generate 2.06 times more return on investment than UniCredit SpA. However, Carlson Investments is 2.06 times more volatile than UniCredit SpA. It trades about 0.07 of its potential returns per unit of risk. UniCredit SpA is currently generating about -0.22 per unit of risk. If you would invest 419.00 in Carlson Investments SA on August 29, 2024 and sell it today you would earn a total of 23.00 from holding Carlson Investments SA or generate 5.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 90.0% |
| Values | Daily Returns |
Carlson Investments SA vs. UniCredit SpA
Performance |
| Timeline |
| Carlson Investments |
| UniCredit SpA |
Carlson Investments and UniCredit SpA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carlson Investments and UniCredit SpA
The main advantage of trading using opposite Carlson Investments and UniCredit SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlson Investments position performs unexpectedly, UniCredit SpA 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 UniCredit SpA will offset losses from the drop in UniCredit SpA's long position.| Carlson Investments vs. Centrum Finansowe Banku | Carlson Investments vs. Asseco Business Solutions | Carlson Investments vs. Detalion Games SA | Carlson Investments vs. CFI Holding SA |
| UniCredit SpA vs. 3R Games SA | UniCredit SpA vs. Enter Air SA | UniCredit SpA vs. Mercator Medical SA | UniCredit SpA vs. Baked Games SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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