Correlation Between Gruppo Mutuionline and Bollor SE
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and Bollor SE 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 Gruppo Mutuionline and Bollor SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gruppo Mutuionline SpA and Bollor SE, you can compare the effects of market volatilities on Gruppo Mutuionline and Bollor SE 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 Bollor SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Bollor SE.
Diversification Opportunities for Gruppo Mutuionline and Bollor SE
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gruppo and Bollor is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Bollor SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bollor SE 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 Bollor SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bollor SE has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and Bollor SE go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Bollor SE
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 1.71 times more return on investment than Bollor SE. However, Gruppo Mutuionline is 1.71 times more volatile than Bollor SE. It trades about 0.25 of its potential returns per unit of risk. Bollor SE is currently generating about 0.09 per unit of risk. If you would invest 3,390 in Gruppo Mutuionline SpA on September 12, 2024 and sell it today you would earn a total of 420.00 from holding Gruppo Mutuionline SpA or generate 12.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. Bollor SE
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Bollor SE |
Gruppo Mutuionline and Bollor SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Bollor SE
The main advantage of trading using opposite Gruppo Mutuionline and Bollor SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, Bollor SE 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 Bollor SE will offset losses from the drop in Bollor SE's long position.| Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc |
| Bollor SE vs. Media and Games | Bollor SE vs. Penn National Gaming | Bollor SE vs. The Yokohama Rubber | Bollor SE vs. Hyster Yale Materials Handling |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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