Correlation Between UNICREDIT SPA and Heartland Financial
Can any of the company-specific risk be diversified away by investing in both UNICREDIT SPA and Heartland Financial 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 UNICREDIT SPA and Heartland Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNICREDIT SPA ADR and Heartland Financial USA, you can compare the effects of market volatilities on UNICREDIT SPA and Heartland Financial 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 UNICREDIT SPA with a short position of Heartland Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNICREDIT SPA and Heartland Financial.
Diversification Opportunities for UNICREDIT SPA and Heartland Financial
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UNICREDIT and Heartland is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding UNICREDIT SPA ADR and Heartland Financial USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartland Financial USA and UNICREDIT SPA 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 UNICREDIT SPA ADR are associated (or correlated) with Heartland Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartland Financial USA has no effect on the direction of UNICREDIT SPA i.e., UNICREDIT SPA and Heartland Financial go up and down completely randomly.
Pair Corralation between UNICREDIT SPA and Heartland Financial
Assuming the 90 days trading horizon UNICREDIT SPA ADR is expected to generate 0.89 times more return on investment than Heartland Financial. However, UNICREDIT SPA ADR is 1.13 times less risky than Heartland Financial. It trades about 0.12 of its potential returns per unit of risk. Heartland Financial USA is currently generating about 0.05 per unit of risk. If you would invest 537.00 in UNICREDIT SPA ADR on September 2, 2024 and sell it today you would earn a total of 1,253 from holding UNICREDIT SPA ADR or generate 233.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UNICREDIT SPA ADR vs. Heartland Financial USA
Performance |
| Timeline |
| UNICREDIT SPA ADR |
| Heartland Financial USA |
UNICREDIT SPA and Heartland Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UNICREDIT SPA and Heartland Financial
The main advantage of trading using opposite UNICREDIT SPA and Heartland Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNICREDIT SPA position performs unexpectedly, Heartland Financial 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 Heartland Financial will offset losses from the drop in Heartland Financial's long position.| UNICREDIT SPA vs. Deutsche Bank Aktiengesellschaft | UNICREDIT SPA vs. Superior Plus Corp | UNICREDIT SPA vs. Origin Agritech | UNICREDIT SPA vs. Identiv |
| Heartland Financial vs. UNICREDIT SPA ADR | Heartland Financial vs. Deutsche Bank Aktiengesellschaft | Heartland Financial vs. Superior Plus Corp | Heartland Financial vs. Origin Agritech |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |