Correlation Between Supermarket Income and Gruppo MutuiOnline
Can any of the company-specific risk be diversified away by investing in both Supermarket Income 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 Supermarket Income and Gruppo MutuiOnline into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supermarket Income REIT and Gruppo MutuiOnline SpA, you can compare the effects of market volatilities on Supermarket Income 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 Supermarket Income with a short position of Gruppo MutuiOnline. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supermarket Income and Gruppo MutuiOnline.
Diversification Opportunities for Supermarket Income and Gruppo MutuiOnline
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Supermarket and Gruppo is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Supermarket Income REIT 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 Supermarket Income 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 Supermarket Income REIT 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 Supermarket Income i.e., Supermarket Income and Gruppo MutuiOnline go up and down completely randomly.
Pair Corralation between Supermarket Income and Gruppo MutuiOnline
Assuming the 90 days trading horizon Supermarket Income is expected to generate 11.26 times less return on investment than Gruppo MutuiOnline. But when comparing it to its historical volatility, Supermarket Income REIT is 1.23 times less risky than Gruppo MutuiOnline. It trades about 0.03 of its potential returns per unit of risk. Gruppo MutuiOnline SpA is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,625 in Gruppo MutuiOnline SpA on November 7, 2024 and sell it today you would earn a total of 165.00 from holding Gruppo MutuiOnline SpA or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 42.86% |
| Values | Daily Returns |
Supermarket Income REIT vs. Gruppo MutuiOnline SpA
Performance |
| Timeline |
| Supermarket Income REIT |
| Gruppo MutuiOnline SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Supermarket Income and Gruppo MutuiOnline Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supermarket Income and Gruppo MutuiOnline
The main advantage of trading using opposite Supermarket Income and Gruppo MutuiOnline positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supermarket Income 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.| Supermarket Income vs. CVS Health Corp | Supermarket Income vs. CleanTech Lithium plc | Supermarket Income vs. Sartorius Stedim Biotech | Supermarket Income vs. Universal Health Services |
| Gruppo MutuiOnline vs. Universal Display Corp | Gruppo MutuiOnline vs. Universal Music Group | Gruppo MutuiOnline vs. Batm Advanced Communications | Gruppo MutuiOnline vs. Infrastrutture Wireless Italiane |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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