Correlation Between Unipol Gruppo and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and WAGNERS HOLDING 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 WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unipol Gruppo Finanziario and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on Unipol Gruppo and WAGNERS HOLDING 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 WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and WAGNERS HOLDING.
Diversification Opportunities for Unipol Gruppo and WAGNERS HOLDING
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Unipol and WAGNERS is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo Finanziario and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD 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 Finanziario are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between Unipol Gruppo and WAGNERS HOLDING
If you would invest 82.00 in WAGNERS HOLDING LTD on October 15, 2024 and sell it today you would earn a total of 0.00 from holding WAGNERS HOLDING LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 6.25% |
| Values | Daily Returns |
Unipol Gruppo Finanziario vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| Unipol Gruppo Finanziario |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
| WAGNERS HOLDING LTD |
Unipol Gruppo and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and WAGNERS HOLDING
The main advantage of trading using opposite Unipol Gruppo and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| Unipol Gruppo vs. Sch Environnement SA | Unipol Gruppo vs. STEEL DYNAMICS | Unipol Gruppo vs. Playmates Toys Limited | Unipol Gruppo vs. JD SPORTS FASH |
| WAGNERS HOLDING vs. Daikin IndustriesLtd | WAGNERS HOLDING vs. Vulcan Materials | WAGNERS HOLDING vs. Heidelberg Materials AG |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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