Correlation Between Gruppo Mutuionline and Stora Enso
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and Stora Enso 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 Stora Enso 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 Stora Enso Oyj, you can compare the effects of market volatilities on Gruppo Mutuionline and Stora Enso 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 Stora Enso. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Stora Enso.
Diversification Opportunities for Gruppo Mutuionline and Stora Enso
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruppo and Stora is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Stora Enso Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stora Enso Oyj 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 Stora Enso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stora Enso Oyj has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and Stora Enso go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Stora Enso
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 2.41 times more return on investment than Stora Enso. However, Gruppo Mutuionline is 2.41 times more volatile than Stora Enso Oyj. It trades about 0.26 of its potential returns per unit of risk. Stora Enso Oyj is currently generating about -0.54 per unit of risk. If you would invest 3,265 in Gruppo Mutuionline SpA on September 5, 2024 and sell it today you would earn a total of 445.00 from holding Gruppo Mutuionline SpA or generate 13.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. Stora Enso Oyj
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Stora Enso Oyj |
Gruppo Mutuionline and Stora Enso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Stora Enso
The main advantage of trading using opposite Gruppo Mutuionline and Stora Enso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, Stora Enso 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 Stora Enso will offset losses from the drop in Stora Enso's long position.| Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc |
| Stora Enso vs. United Natural Foods | Stora Enso vs. EBRO FOODS | Stora Enso vs. ScanSource | Stora Enso vs. PREMIER FOODS |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |