Correlation Between Gruppo Mutuionline and Booking Holdings
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and Booking Holdings 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 Booking Holdings 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 Booking Holdings, you can compare the effects of market volatilities on Gruppo Mutuionline and Booking Holdings 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 Booking Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and Booking Holdings.
Diversification Opportunities for Gruppo Mutuionline and Booking Holdings
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gruppo and Booking is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and Booking Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Booking Holdings 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 Booking Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Booking Holdings has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and Booking Holdings go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and Booking Holdings
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 0.74 times more return on investment than Booking Holdings. However, Gruppo Mutuionline SpA is 1.34 times less risky than Booking Holdings. It trades about 0.11 of its potential returns per unit of risk. Booking Holdings is currently generating about -0.1 per unit of risk. If you would invest 3,665 in Gruppo Mutuionline SpA on November 6, 2024 and sell it today you would earn a total of 115.00 from holding Gruppo Mutuionline SpA or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. Booking Holdings
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| Booking Holdings |
Gruppo Mutuionline and Booking Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and Booking Holdings
The main advantage of trading using opposite Gruppo Mutuionline and Booking Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, Booking Holdings 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 Booking Holdings will offset losses from the drop in Booking Holdings' long position.| Gruppo Mutuionline vs. TIANDE CHEMICAL | Gruppo Mutuionline vs. COLUMBIA SPORTSWEAR | Gruppo Mutuionline vs. CHEMICAL INDUSTRIES | Gruppo Mutuionline vs. NISSAN CHEMICAL IND |
| Booking Holdings vs. SENECA FOODS A | Booking Holdings vs. Tower Semiconductor | Booking Holdings vs. Taiwan Semiconductor Manufacturing | Booking Holdings vs. Cal Maine 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 CEOs Directory module to screen CEOs from public companies around the world.
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