Correlation Between NAKED WINES and Gruppo Mutuionline
Can any of the company-specific risk be diversified away by investing in both NAKED WINES and Gruppo Mutuionline 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 NAKED WINES and Gruppo Mutuionline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NAKED WINES PLC and Gruppo Mutuionline SpA, you can compare the effects of market volatilities on NAKED WINES and Gruppo Mutuionline 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 NAKED WINES with a short position of Gruppo Mutuionline. Check out your portfolio center. Please also check ongoing floating volatility patterns of NAKED WINES and Gruppo Mutuionline.
Diversification Opportunities for NAKED WINES and Gruppo Mutuionline
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between NAKED and Gruppo is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding NAKED WINES PLC and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA and NAKED WINES 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 NAKED WINES PLC are associated (or correlated) with Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of NAKED WINES i.e., NAKED WINES and Gruppo Mutuionline go up and down completely randomly.
Pair Corralation between NAKED WINES and Gruppo Mutuionline
Assuming the 90 days horizon NAKED WINES PLC is expected to generate 3.05 times more return on investment than Gruppo Mutuionline. However, NAKED WINES is 3.05 times more volatile than Gruppo Mutuionline SpA. It trades about 0.09 of its potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about 0.2 per unit of risk. If you would invest 53.00 in NAKED WINES PLC on November 3, 2024 and sell it today you would earn a total of 4.00 from holding NAKED WINES PLC or generate 7.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NAKED WINES PLC vs. Gruppo Mutuionline SpA
Performance |
| Timeline |
| NAKED WINES PLC |
| Gruppo Mutuionline SpA |
NAKED WINES and Gruppo Mutuionline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NAKED WINES and Gruppo Mutuionline
The main advantage of trading using opposite NAKED WINES and Gruppo Mutuionline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NAKED WINES position performs unexpectedly, Gruppo Mutuionline 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 Gruppo Mutuionline will offset losses from the drop in Gruppo Mutuionline's long position.| NAKED WINES vs. Heidelberg Materials AG | NAKED WINES vs. THRACE PLASTICS | NAKED WINES vs. Summit Materials | NAKED WINES vs. Sumitomo Rubber Industries |
| Gruppo Mutuionline vs. SIVERS SEMICONDUCTORS AB | Gruppo Mutuionline vs. NorAm Drilling AS | Gruppo Mutuionline vs. Volkswagen AG | Gruppo Mutuionline vs. Darden Restaurants |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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