Correlation Between Unipol Gruppo and Equitable Holdings
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and Equitable Holdings 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 Equitable Holdings 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 Equitable Holdings, you can compare the effects of market volatilities on Unipol Gruppo and Equitable Holdings 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 Equitable Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and Equitable Holdings.
Diversification Opportunities for Unipol Gruppo and Equitable Holdings
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Unipol and Equitable is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo Finanziario and Equitable Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Equitable Holdings 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 Equitable Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Equitable Holdings has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and Equitable Holdings go up and down completely randomly.
Pair Corralation between Unipol Gruppo and Equitable Holdings
Assuming the 90 days trading horizon Unipol Gruppo Finanziario is expected to under-perform the Equitable Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Unipol Gruppo Finanziario is 1.57 times less risky than Equitable Holdings. The stock trades about -0.04 of its potential returns per unit of risk. The Equitable Holdings is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 4,098 in Equitable Holdings on September 2, 2024 and sell it today you would earn a total of 382.00 from holding Equitable Holdings or generate 9.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unipol Gruppo Finanziario vs. Equitable Holdings
Performance |
| Timeline |
| Unipol Gruppo Finanziario |
| Equitable Holdings |
Unipol Gruppo and Equitable Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and Equitable Holdings
The main advantage of trading using opposite Unipol Gruppo and Equitable Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, Equitable Holdings 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 Equitable Holdings will offset losses from the drop in Equitable Holdings' long position.| Unipol Gruppo vs. SBM OFFSHORE | Unipol Gruppo vs. AOYAMA TRADING | Unipol Gruppo vs. ULTRA CLEAN HLDGS | Unipol Gruppo vs. Solstad Offshore ASA |
| Equitable Holdings vs. NN Group NV | Equitable Holdings vs. Superior Plus Corp | Equitable Holdings vs. Origin Agritech | Equitable Holdings vs. Identiv |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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