Correlation Between Caseys General and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Caseys General 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 Caseys General and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Caseys General Stores and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Caseys General 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 Caseys General with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caseys General and Gruppo Mutuionline.
Diversification Opportunities for Caseys General and Gruppo Mutuionline
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Caseys and Gruppo is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Caseys General Stores 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 Caseys General 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 Caseys General Stores 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 Caseys General i.e., Caseys General and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Caseys General and Gruppo Mutuionline
Assuming the 90 days trading horizon Caseys General Stores is expected to generate 0.84 times more return on investment than Gruppo Mutuionline. However, Caseys General Stores is 1.19 times less risky than Gruppo Mutuionline. It trades about 0.35 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.22 per unit of risk. If you would invest 34,800 in Caseys General Stores on September 4, 2024 and sell it today you would earn a total of 5,200 from holding Caseys General Stores or generate 14.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caseys General Stores vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Caseys General Stores |
| Gruppo Mutuionline SpA |
Caseys General and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caseys General and Gruppo Mutuionline
The main advantage of trading using opposite Caseys General and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caseys General 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.| Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc | Caseys General vs. Apple Inc |
| Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |