Correlation Between Unipol Gruppo and Air Transport
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and Air Transport 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 Air Transport 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 Air Transport Services, you can compare the effects of market volatilities on Unipol Gruppo and Air Transport 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 Air Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and Air Transport.
Diversification Opportunities for Unipol Gruppo and Air Transport
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Unipol and Air is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo Finanziario and Air Transport Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Transport Services 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 Air Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Transport Services has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and Air Transport go up and down completely randomly.
Pair Corralation between Unipol Gruppo and Air Transport
Assuming the 90 days trading horizon Unipol Gruppo Finanziario is expected to generate 2.23 times more return on investment than Air Transport. However, Unipol Gruppo is 2.23 times more volatile than Air Transport Services. It trades about 0.28 of its potential returns per unit of risk. Air Transport Services is currently generating about 0.19 per unit of risk. If you would invest 1,200 in Unipol Gruppo Finanziario on November 3, 2024 and sell it today you would earn a total of 113.00 from holding Unipol Gruppo Finanziario or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unipol Gruppo Finanziario vs. Air Transport Services
Performance |
| Timeline |
| Unipol Gruppo Finanziario |
| Air Transport Services |
Unipol Gruppo and Air Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and Air Transport
The main advantage of trading using opposite Unipol Gruppo and Air Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, Air Transport 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 Air Transport will offset losses from the drop in Air Transport's long position.| Unipol Gruppo vs. Gold Road Resources | Unipol Gruppo vs. United Utilities Group | Unipol Gruppo vs. ETFS Coffee ETC | Unipol Gruppo vs. SAFEROADS HLDGS |
| Air Transport vs. BURLINGTON STORES | Air Transport vs. MAG SILVER | Air Transport vs. GOME Retail Holdings | Air Transport vs. Yanzhou Coal Mining |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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