Correlation Between WINMARK and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both WINMARK 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 WINMARK and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WINMARK and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on WINMARK 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 WINMARK with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of WINMARK and Gruppo Mutuionline.
Diversification Opportunities for WINMARK and Gruppo Mutuionline
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between WINMARK and Gruppo is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding WINMARK 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 WINMARK 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 WINMARK 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 WINMARK i.e., WINMARK and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between WINMARK and Gruppo Mutuionline
Assuming the 90 days trading horizon WINMARK is expected to generate 1.13 times more return on investment than Gruppo Mutuionline. However, WINMARK is 1.13 times more volatile than Gruppo Mutuionline SpA. It trades about 0.16 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.17 per unit of risk. If you would invest 31,528 in WINMARK on September 12, 2024 and sell it today you would earn a total of 7,072 from holding WINMARK or generate 22.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.46% |
| Values | Daily Returns |
WINMARK vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| WINMARK |
| Gruppo Mutuionline SpA |
WINMARK and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WINMARK and Gruppo Mutuionline
The main advantage of trading using opposite WINMARK and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WINMARK 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.| WINMARK vs. Regions Financial | WINMARK vs. VIRG NATL BANKSH | WINMARK vs. KENEDIX OFFICE INV | WINMARK vs. CITY OFFICE REIT |
| Gruppo Mutuionline vs. RELIANCE STEEL AL | Gruppo Mutuionline vs. ETFS Coffee ETC | Gruppo Mutuionline vs. Major Drilling Group | Gruppo Mutuionline vs. Nippon Steel |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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