Correlation Between UniCredit SpA and APS Energia
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and APS Energia 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 APS Energia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and APS Energia SA, you can compare the effects of market volatilities on UniCredit SpA and APS Energia 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 APS Energia. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and APS Energia.
Diversification Opportunities for UniCredit SpA and APS Energia
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between UniCredit and APS is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and APS Energia SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APS Energia 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 APS Energia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APS Energia SA has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and APS Energia go up and down completely randomly.
Pair Corralation between UniCredit SpA and APS Energia
Assuming the 90 days trading horizon UniCredit SpA is expected to generate 1.18 times more return on investment than APS Energia. However, UniCredit SpA is 1.18 times more volatile than APS Energia SA. It trades about 0.07 of its potential returns per unit of risk. APS Energia SA is currently generating about 0.01 per unit of risk. If you would invest 5,900 in UniCredit SpA on August 30, 2024 and sell it today you would earn a total of 9,526 from holding UniCredit SpA or generate 161.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 86.84% |
| Values | Daily Returns |
UniCredit SpA vs. APS Energia SA
Performance |
| Timeline |
| UniCredit SpA |
| APS Energia SA |
UniCredit SpA and APS Energia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and APS Energia
The main advantage of trading using opposite UniCredit SpA and APS Energia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, APS Energia 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 APS Energia will offset losses from the drop in APS Energia's long position.| UniCredit SpA vs. 3R Games SA | UniCredit SpA vs. Enter Air SA | UniCredit SpA vs. Mercator Medical SA | UniCredit SpA vs. Baked Games SA |
| APS Energia vs. Asseco Business Solutions | APS Energia vs. Detalion Games SA | APS Energia vs. Asseco South Eastern | APS Energia vs. Vercom SA |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |