Correlation Between UniCredit SpA and Selena FM
Can any of the company-specific risk be diversified away by investing in both UniCredit SpA and Selena FM 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 Selena FM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UniCredit SpA and Selena FM SA, you can compare the effects of market volatilities on UniCredit SpA and Selena FM 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 Selena FM. Check out your portfolio center. Please also check ongoing floating volatility patterns of UniCredit SpA and Selena FM.
Diversification Opportunities for UniCredit SpA and Selena FM
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between UniCredit and Selena is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding UniCredit SpA and Selena FM SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Selena FM 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 Selena FM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Selena FM SA has no effect on the direction of UniCredit SpA i.e., UniCredit SpA and Selena FM go up and down completely randomly.
Pair Corralation between UniCredit SpA and Selena FM
Assuming the 90 days trading horizon UniCredit SpA is expected to generate 2.09 times more return on investment than Selena FM. However, UniCredit SpA is 2.09 times more volatile than Selena FM SA. It trades about 0.07 of its potential returns per unit of risk. Selena FM SA is currently generating about 0.04 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 | Insignificant |
| Accuracy | 86.84% |
| Values | Daily Returns |
UniCredit SpA vs. Selena FM SA
Performance |
| Timeline |
| UniCredit SpA |
| Selena FM SA |
UniCredit SpA and Selena FM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with UniCredit SpA and Selena FM
The main advantage of trading using opposite UniCredit SpA and Selena FM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UniCredit SpA position performs unexpectedly, Selena FM 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 Selena FM will offset losses from the drop in Selena FM'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 |
| Selena FM vs. Banco Santander SA | Selena FM vs. UniCredit SpA | Selena FM vs. CEZ as | Selena FM 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |