Correlation Between UniCredit SpA and Gielda Papierow
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and Gielda Papierow 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 Gielda Papierow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Gielda Papierow Wartosciowych, you can compare the effects of market volatilities on UniCredit SpA and Gielda Papierow 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 Gielda Papierow. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Gielda Papierow.
Diversification Opportunities for UniCredit SpA and Gielda Papierow
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UniCredit and Gielda is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Gielda Papierow Wartosciowych in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gielda Papierow Wart 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 Gielda Papierow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gielda Papierow Wart has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and Gielda Papierow go up and down completely randomly.
Pair Corralation between UniCredit SpA and Gielda Papierow
Assuming the 90 days trading horizon UniCredit SpA is expected to under-perform the Gielda Papierow. In addition to that, UniCredit SpA is 2.11 times more volatile than Gielda Papierow Wartosciowych. It trades about -0.32 of its total potential returns per unit of risk. Gielda Papierow Wartosciowych is currently generating about 0.04 per unit of volatility. If you would invest 4,265 in Gielda Papierow Wartosciowych on September 4, 2024 and sell it today you would earn a total of 35.00 from holding Gielda Papierow Wartosciowych or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 85.71% |
| Values | Daily Returns |
UniCredit SpA vs. Gielda Papierow Wartosciowych
Performance |
| Timeline |
| UniCredit SpA |
| Gielda Papierow Wart |
UniCredit SpA and Gielda Papierow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Gielda Papierow
The main advantage of trading using opposite UniCredit SpA and Gielda Papierow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, Gielda Papierow 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 Gielda Papierow will offset losses from the drop in Gielda Papierow'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 |
| Gielda Papierow vs. BNP Paribas Bank | Gielda Papierow vs. mBank SA | Gielda Papierow vs. Gaming Factory SA | Gielda Papierow vs. TEN SQUARE GAMES |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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