Correlation Between International General and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both International General and Assicurazioni Generali 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 International General and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International General Insurance and Assicurazioni Generali SpA, you can compare the effects of market volatilities on International General and Assicurazioni Generali 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 International General with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of International General and Assicurazioni Generali.
Diversification Opportunities for International General and Assicurazioni Generali
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between International and Assicurazioni is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding International General Insuranc and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and International 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 International General Insurance are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of International General i.e., International General and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between International General and Assicurazioni Generali
Given the investment horizon of 90 days International General Insurance is expected to generate 6.67 times more return on investment than Assicurazioni Generali. However, International General is 6.67 times more volatile than Assicurazioni Generali SpA. It trades about 0.28 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.22 per unit of risk. If you would invest 2,224 in International General Insurance on August 27, 2024 and sell it today you would earn a total of 364.00 from holding International General Insurance or generate 16.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
International General Insuranc vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| International General |
| Assicurazioni Generali |
International General and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International General and Assicurazioni Generali
The main advantage of trading using opposite International General and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International General position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
| Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Athene Holding | Assicurazioni Generali vs. Arch Capital Group |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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