Correlation Between Unipol Gruppo and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and Assicurazioni Generali 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 Unipol Gruppo and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unipol Gruppo SpA and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Unipol Gruppo and Assicurazioni Generali 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 Unipol Gruppo with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and Assicurazioni Generali.
Diversification Opportunities for Unipol Gruppo and Assicurazioni Generali
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Unipol and Assicurazioni is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo SpA and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Unipol Gruppo 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 Unipol Gruppo SpA are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Unipol Gruppo and Assicurazioni Generali
Assuming the 90 days horizon Unipol Gruppo SpA is expected to generate 3.82 times more return on investment than Assicurazioni Generali. However, Unipol Gruppo is 3.82 times more volatile than Assicurazioni Generali SpA. It trades about 0.08 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.11 per unit of risk. If you would invest 222.00 in Unipol Gruppo SpA on September 19, 2024 and sell it today you would earn a total of 251.00 from holding Unipol Gruppo SpA or generate 113.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.58% |
| Values | Daily Returns |
Unipol Gruppo SpA vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| Unipol Gruppo SpA |
| Assicurazioni Generali |
Unipol Gruppo and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and Assicurazioni Generali
The main advantage of trading using opposite Unipol Gruppo and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| Unipol Gruppo vs. Athene Holding | Unipol Gruppo vs. Assicurazioni Generali SpA | Unipol Gruppo vs. AXA SA | Unipol Gruppo vs. Assicurazioni Generali SpA |
| Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. AXA 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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