Correlation Between Gruppo Mutuionline and United Internet
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and United Internet 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 United Internet 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 United Internet AG, you can compare the effects of market volatilities on Gruppo Mutuionline and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and United Internet.
Diversification Opportunities for Gruppo Mutuionline and United Internet
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruppo and United is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and United Internet go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and United Internet
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 0.88 times more return on investment than United Internet. However, Gruppo Mutuionline SpA is 1.14 times less risky than United Internet. It trades about 0.07 of its potential returns per unit of risk. United Internet AG is currently generating about -0.01 per unit of risk. If you would invest 3,265 in Gruppo Mutuionline SpA on November 3, 2024 and sell it today you would earn a total of 535.00 from holding Gruppo Mutuionline SpA or generate 16.39% 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. United Internet AG
Performance |
| Timeline |
| Gruppo Mutuionline SpA |
| United Internet AG |
Gruppo Mutuionline and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gruppo Mutuionline and United Internet
The main advantage of trading using opposite Gruppo Mutuionline and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| Gruppo Mutuionline vs. SIVERS SEMICONDUCTORS AB | Gruppo Mutuionline vs. NorAm Drilling AS | Gruppo Mutuionline vs. Volkswagen AG | Gruppo Mutuionline vs. Darden Restaurants |
| United Internet vs. Minerals Technologies | United Internet vs. Agilent Technologies | United Internet vs. Easy Software AG | United Internet vs. The Boston Beer |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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