Correlation Between UniCredit SpA and E Shopping
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and E Shopping 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 E Shopping into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and E shopping Group SA, you can compare the effects of market volatilities on UniCredit SpA and E Shopping 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 E Shopping. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and E Shopping.
Diversification Opportunities for UniCredit SpA and E Shopping
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between UniCredit and ESG is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and E shopping Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E shopping Group 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 E Shopping. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E shopping Group has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and E Shopping go up and down completely randomly.
Pair Corralation between UniCredit SpA and E Shopping
Assuming the 90 days trading horizon UniCredit SpA is expected to generate 17.15 times less return on investment than E Shopping. But when comparing it to its historical volatility, UniCredit SpA is 7.12 times less risky than E Shopping. It trades about 0.16 of its potential returns per unit of risk. E shopping Group SA is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 50.00 in E shopping Group SA on October 17, 2024 and sell it today you would earn a total of 49.00 from holding E shopping Group SA or generate 98.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
UniCredit SpA vs. E shopping Group SA
Performance |
| Timeline |
| UniCredit SpA |
| E shopping Group |
UniCredit SpA and E Shopping Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and E Shopping
The main advantage of trading using opposite UniCredit SpA and E Shopping positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, E Shopping 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 E Shopping will offset losses from the drop in E Shopping's long position.| UniCredit SpA vs. PZ Cormay SA | UniCredit SpA vs. Drago entertainment SA | UniCredit SpA vs. Carlson Investments SA | UniCredit SpA vs. Echo Investment SA |
| E Shopping vs. MW Trade SA | E Shopping vs. M Food SA | E Shopping vs. Play2Chill SA | E Shopping vs. PLAYWAY 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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