Correlation Between Mediobanca Banca and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Mediobanca Banca 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 Mediobanca Banca and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mediobanca Banca di and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Mediobanca Banca 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 Mediobanca Banca with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mediobanca Banca and Assicurazioni Generali.
Diversification Opportunities for Mediobanca Banca and Assicurazioni Generali
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mediobanca and Assicurazioni is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mediobanca Banca di and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Mediobanca Banca 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 Mediobanca Banca di 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 Mediobanca Banca i.e., Mediobanca Banca and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Mediobanca Banca and Assicurazioni Generali
Assuming the 90 days horizon Mediobanca Banca is expected to generate 1.04 times less return on investment than Assicurazioni Generali. In addition to that, Mediobanca Banca is 1.29 times more volatile than Assicurazioni Generali SpA. It trades about 0.08 of its total potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.11 per unit of volatility. If you would invest 870.00 in Assicurazioni Generali SpA on November 7, 2024 and sell it today you would earn a total of 713.00 from holding Assicurazioni Generali SpA or generate 81.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mediobanca Banca di vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| Mediobanca Banca |
| Assicurazioni Generali |
Mediobanca Banca and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mediobanca Banca and Assicurazioni Generali
The main advantage of trading using opposite Mediobanca Banca and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mediobanca Banca 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.| Mediobanca Banca vs. Absa Group Limited | Mediobanca Banca vs. Societe Generale ADR | Mediobanca Banca vs. BNP Paribas SA | Mediobanca Banca vs. Intesa Sanpaolo SpA |
| Assicurazioni Generali vs. AXA SA | 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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