Correlation Between UniCredit SpA and Atlantis
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and Atlantis 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 Atlantis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Atlantis SA, you can compare the effects of market volatilities on UniCredit SpA and Atlantis 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 Atlantis. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Atlantis.
Diversification Opportunities for UniCredit SpA and Atlantis
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between UniCredit and Atlantis is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Atlantis SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atlantis 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 Atlantis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atlantis SA has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and Atlantis go up and down completely randomly.
Pair Corralation between UniCredit SpA and Atlantis
Assuming the 90 days trading horizon UniCredit SpA is expected to generate 5.17 times less return on investment than Atlantis. But when comparing it to its historical volatility, UniCredit SpA is 3.55 times less risky than Atlantis. It trades about 0.37 of its potential returns per unit of risk. Atlantis SA is currently generating about 0.53 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Atlantis SA on October 25, 2024 and sell it today you would earn a total of 9.00 from holding Atlantis SA or generate 60.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
UniCredit SpA vs. Atlantis SA
Performance |
| Timeline |
| UniCredit SpA |
| Atlantis SA |
UniCredit SpA and Atlantis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Atlantis
The main advantage of trading using opposite UniCredit SpA and Atlantis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, Atlantis 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 Atlantis will offset losses from the drop in Atlantis' long position.| UniCredit SpA vs. Igoria Trade SA | UniCredit SpA vs. X Trade Brokers | UniCredit SpA vs. Globe Trade Centre | UniCredit SpA vs. Carlson Investments SA |
| Atlantis vs. Quantum Software SA | Atlantis vs. PZ Cormay SA | Atlantis vs. Mercator Medical SA | Atlantis vs. LSI Software 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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