Correlation Between Gruppo Mutuionline and Bayer AG
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By analyzing existing cross correlation between Gruppo Mutuionline SpA and Bayer AG NA, you can compare the effects of market volatilities on Gruppo Mutuionline and Bayer AG 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 Gruppo Mutuionline with a short position of Bayer AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Bayer AG.
Diversification Opportunities for Gruppo Mutuionline and Bayer AG
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gruppo and Bayer is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Bayer AG NA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayer AG NA and Gruppo Mutuionline 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 Gruppo Mutuionline SpA are associated (or correlated) with Bayer AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayer AG NA has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and Bayer AG go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Bayer AG
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 0.82 times more return on investment than Bayer AG. However, Gruppo Mutuionline SpA is 1.22 times less risky than Bayer AG. It trades about -0.01 of its potential returns per unit of risk. Bayer AG NA is currently generating about -0.07 per unit of risk. If you would invest 3,655 in Gruppo Mutuionline SpA on November 28, 2024 and sell it today you would lose (150.00) from holding Gruppo Mutuionline SpA or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. Bayer AG NA
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Bayer AG NA |
Gruppo Mutuionline and Bayer AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Bayer AG
The main advantage of trading using opposite Gruppo Mutuionline and Bayer AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, Bayer AG 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 Bayer AG will offset losses from the drop in Bayer AG's long position.| Gruppo Mutuionline vs. Sinopec Shanghai Petrochemical | Gruppo Mutuionline vs. Eastman Chemical | Gruppo Mutuionline vs. Sekisui Chemical Co | Gruppo Mutuionline vs. Siamgas And Petrochemicals |
| Bayer AG vs. Micron Technology | Bayer AG vs. BRIT AMER TOBACCO | Bayer AG vs. X FAB Silicon Foundries | Bayer AG vs. MINCO SILVER |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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