Correlation Between TRADEDOUBLER and Poste Italiane
Can any of the company-specific risk be diversified away by investing in both TRADEDOUBLER and Poste Italiane 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 TRADEDOUBLER and Poste Italiane into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TRADEDOUBLER AB SK and Poste Italiane SpA, you can compare the effects of market volatilities on TRADEDOUBLER and Poste Italiane 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 TRADEDOUBLER with a short position of Poste Italiane. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRADEDOUBLER and Poste Italiane.
Diversification Opportunities for TRADEDOUBLER and Poste Italiane
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TRADEDOUBLER and Poste is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding TRADEDOUBLER AB SK and Poste Italiane SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poste Italiane SpA and TRADEDOUBLER 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 TRADEDOUBLER AB SK are associated (or correlated) with Poste Italiane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poste Italiane SpA has no effect on the direction of TRADEDOUBLER i.e., TRADEDOUBLER and Poste Italiane go up and down completely randomly.
Pair Corralation between TRADEDOUBLER and Poste Italiane
Assuming the 90 days horizon TRADEDOUBLER AB SK is expected to under-perform the Poste Italiane. In addition to that, TRADEDOUBLER is 3.26 times more volatile than Poste Italiane SpA. It trades about -0.01 of its total potential returns per unit of risk. Poste Italiane SpA is currently generating about 0.14 per unit of volatility. If you would invest 927.00 in Poste Italiane SpA on September 14, 2024 and sell it today you would earn a total of 447.00 from holding Poste Italiane SpA or generate 48.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TRADEDOUBLER AB SK vs. Poste Italiane SpA
Performance |
| Timeline |
| TRADEDOUBLER AB SK |
| Poste Italiane SpA |
TRADEDOUBLER and Poste Italiane Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TRADEDOUBLER and Poste Italiane
The main advantage of trading using opposite TRADEDOUBLER and Poste Italiane positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRADEDOUBLER position performs unexpectedly, Poste Italiane 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 Poste Italiane will offset losses from the drop in Poste Italiane's long position.| TRADEDOUBLER vs. Superior Plus Corp | TRADEDOUBLER vs. SIVERS SEMICONDUCTORS AB | TRADEDOUBLER vs. NorAm Drilling AS | TRADEDOUBLER vs. Norsk Hydro ASA |
| Poste Italiane vs. PLAYMATES TOYS | Poste Italiane vs. TRADEDOUBLER AB SK | Poste Italiane vs. ePlay Digital | Poste Italiane vs. Playtech plc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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