Correlation Between Gruppo Mutuionline and PICKN PAY
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and PICKN PAY 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 PICKN PAY 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 PICKN PAY STORES, you can compare the effects of market volatilities on Gruppo Mutuionline and PICKN PAY 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 PICKN PAY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and PICKN PAY.
Diversification Opportunities for Gruppo Mutuionline and PICKN PAY
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gruppo and PICKN is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and PICKN PAY STORES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PICKN PAY STORES 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 PICKN PAY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PICKN PAY STORES has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and PICKN PAY go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and PICKN PAY
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to under-perform the PICKN PAY. But the stock apears to be less risky and, when comparing its historical volatility, Gruppo Mutuionline SpA is 1.4 times less risky than PICKN PAY. The stock trades about -0.01 of its potential returns per unit of risk. The PICKN PAY STORES is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 119.00 in PICKN PAY STORES on November 28, 2024 and sell it today you would earn a total of 26.00 from holding PICKN PAY STORES or generate 21.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gruppo Mutuionline SpA vs. PICKN PAY STORES
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| PICKN PAY STORES |
Gruppo Mutuionline and PICKN PAY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and PICKN PAY
The main advantage of trading using opposite Gruppo Mutuionline and PICKN PAY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, PICKN PAY 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 PICKN PAY will offset losses from the drop in PICKN PAY'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 |
| PICKN PAY vs. Playtech plc | PICKN PAY vs. Fukuyama Transporting Co | PICKN PAY vs. PLAYWAY SA ZY 10 | PICKN PAY vs. SPORTING |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |