Correlation Between Gruppo Mutuionline and ITV Plc
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and ITV Plc 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 ITV Plc 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 ITV plc, you can compare the effects of market volatilities on Gruppo Mutuionline and ITV Plc 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 ITV Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and ITV Plc.
Diversification Opportunities for Gruppo Mutuionline and ITV Plc
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gruppo and ITV is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and ITV plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ITV plc 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 ITV Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ITV plc has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and ITV Plc go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and ITV Plc
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 0.74 times more return on investment than ITV Plc. However, Gruppo Mutuionline SpA is 1.36 times less risky than ITV Plc. It trades about 0.06 of its potential returns per unit of risk. ITV plc is currently generating about 0.03 per unit of risk. If you would invest 2,438 in Gruppo Mutuionline SpA on September 13, 2024 and sell it today you would earn a total of 1,432 from holding Gruppo Mutuionline SpA or generate 58.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. ITV plc
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| ITV plc |
Gruppo Mutuionline and ITV Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and ITV Plc
The main advantage of trading using opposite Gruppo Mutuionline and ITV Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, ITV Plc 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 ITV Plc will offset losses from the drop in ITV Plc's long position.| Gruppo Mutuionline vs. RELIANCE STEEL AL | Gruppo Mutuionline vs. ETFS Coffee ETC | Gruppo Mutuionline vs. Major Drilling Group | Gruppo Mutuionline vs. Nippon Steel |
| ITV Plc vs. New Residential Investment | ITV Plc vs. Gladstone Investment | ITV Plc vs. AGNC INVESTMENT | ITV Plc vs. AOYAMA TRADING |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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