Correlation Between UniCredit SpA and Atal SA
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and Atal SA 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 UniCredit SpA and Atal SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Atal SA, you can compare the effects of market volatilities on UniCredit SpA and Atal SA 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 UniCredit SpA with a short position of Atal SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Atal SA.
Diversification Opportunities for UniCredit SpA and Atal SA
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between UniCredit and Atal is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Atal SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atal SA and UniCredit SpA 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 UniCredit SpA are associated (or correlated) with Atal SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atal SA has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and Atal SA go up and down completely randomly.
Pair Corralation between UniCredit SpA and Atal SA
Assuming the 90 days trading horizon UniCredit SpA is expected to under-perform the Atal SA. In addition to that, UniCredit SpA is 1.47 times more volatile than Atal SA. It trades about -0.32 of its total potential returns per unit of risk. Atal SA is currently generating about 0.03 per unit of volatility. If you would invest 5,260 in Atal SA on September 4, 2024 and sell it today you would earn a total of 40.00 from holding Atal SA or generate 0.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 85.71% |
| Values | Daily Returns |
UniCredit SpA vs. Atal SA
Performance |
| Timeline |
| UniCredit SpA |
| Atal SA |
UniCredit SpA and Atal SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Atal SA
The main advantage of trading using opposite UniCredit SpA and Atal SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, Atal SA 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 Atal SA will offset losses from the drop in Atal SA's long position.| UniCredit SpA vs. Carlson Investments SA | UniCredit SpA vs. Drago entertainment SA | UniCredit SpA vs. MCI Management SA | UniCredit SpA vs. Baked Games SA |
| Atal SA vs. Banco Santander SA | Atal SA vs. UniCredit SpA | Atal SA vs. CEZ as | Atal SA vs. Polski Koncern Naftowy |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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