Correlation Between Intercontinental and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both Intercontinental 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 Intercontinental and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intercontinental Exchange and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on Intercontinental 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 Intercontinental with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intercontinental and Gruppo Mutuionline.
Diversification Opportunities for Intercontinental and Gruppo Mutuionline
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intercontinental and Gruppo is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Intercontinental Exchange 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 Intercontinental 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 Intercontinental Exchange 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 Intercontinental i.e., Intercontinental and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between Intercontinental and Gruppo Mutuionline
Assuming the 90 days trading horizon Intercontinental Exchange is expected to generate 0.77 times more return on investment than Gruppo Mutuionline. However, Intercontinental Exchange is 1.3 times less risky than Gruppo Mutuionline. It trades about 0.03 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.02 per unit of risk. If you would invest 14,450 in Intercontinental Exchange on October 25, 2024 and sell it today you would earn a total of 66.00 from holding Intercontinental Exchange or generate 0.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.44% |
| Values | Daily Returns |
Intercontinental Exchange vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| Intercontinental Exchange |
| Gruppo Mutuionline SpA |
Intercontinental and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intercontinental and Gruppo Mutuionline
The main advantage of trading using opposite Intercontinental and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intercontinental 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.| Intercontinental vs. Gruppo Mutuionline SpA | Intercontinental vs. MTY Food Group | Intercontinental vs. Carsales | Intercontinental vs. Axfood AB |
| Gruppo Mutuionline vs. CENTURIA OFFICE REIT | Gruppo Mutuionline vs. IMAGIN MEDICAL INC | Gruppo Mutuionline vs. CompuGroup Medical SE | Gruppo Mutuionline vs. Genertec Universal Medical |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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