Correlation Between Unipol Gruppo and International General
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and International General 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 International General 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 International General Insurance, you can compare the effects of market volatilities on Unipol Gruppo and International General 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 International General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and International General.
Diversification Opportunities for Unipol Gruppo and International General
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Unipol and International is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo SpA and International General Insuranc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International General 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 International General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International General has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and International General go up and down completely randomly.
Pair Corralation between Unipol Gruppo and International General
Assuming the 90 days horizon Unipol Gruppo SpA is expected to generate 3.3 times more return on investment than International General. However, Unipol Gruppo is 3.3 times more volatile than International General Insurance. It trades about 0.08 of its potential returns per unit of risk. International General Insurance is currently generating about 0.14 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 | 48.98% |
| Values | Daily Returns |
Unipol Gruppo SpA vs. International General Insuranc
Performance |
| Timeline |
| Unipol Gruppo SpA |
| International General |
Unipol Gruppo and International General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and International General
The main advantage of trading using opposite Unipol Gruppo and International General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, International General 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 International General will offset losses from the drop in International General'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 |
| International General vs. Enstar Group Limited | International General vs. Axa Equitable Holdings | International General vs. Arch Capital Group | International General vs. Waterdrop ADR |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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