Correlation Between Unipol Gruppo and AXA SA
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and AXA SA 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 AXA SA 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 AXA SA, you can compare the effects of market volatilities on Unipol Gruppo and AXA SA 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 AXA SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and AXA SA.
Diversification Opportunities for Unipol Gruppo and AXA SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Unipol and AXA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo SpA and AXA SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AXA SA 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 AXA SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AXA SA has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and AXA SA go up and down completely randomly.
Pair Corralation between Unipol Gruppo and AXA SA
Assuming the 90 days horizon Unipol Gruppo SpA is expected to generate 1.23 times more return on investment than AXA SA. However, Unipol Gruppo is 1.23 times more volatile than AXA SA. It trades about 0.07 of its potential returns per unit of risk. AXA SA is currently generating about 0.04 per unit of risk. If you would invest 202.00 in Unipol Gruppo SpA on September 19, 2024 and sell it today you would earn a total of 271.00 from holding Unipol Gruppo SpA or generate 134.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 64.98% |
| Values | Daily Returns |
Unipol Gruppo SpA vs. AXA SA
Performance |
| Timeline |
| Unipol Gruppo SpA |
| AXA SA |
Unipol Gruppo and AXA SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and AXA SA
The main advantage of trading using opposite Unipol Gruppo and AXA SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, AXA SA 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 AXA SA will offset losses from the drop in AXA SA'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 |
| AXA SA vs. Berkshire Hathaway | AXA SA vs. Berkshire Hathaway | AXA SA vs. Zurich Insurance Group | AXA SA vs. American International Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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