Correlation Between Unipol Gruppo and ZINC MEDIA
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and ZINC MEDIA 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 ZINC MEDIA 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 ZINC MEDIA GR, you can compare the effects of market volatilities on Unipol Gruppo and ZINC MEDIA 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 ZINC MEDIA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and ZINC MEDIA.
Diversification Opportunities for Unipol Gruppo and ZINC MEDIA
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Unipol and ZINC is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo Finanziario and ZINC MEDIA GR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZINC MEDIA GR 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 ZINC MEDIA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZINC MEDIA GR has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and ZINC MEDIA go up and down completely randomly.
Pair Corralation between Unipol Gruppo and ZINC MEDIA
Assuming the 90 days trading horizon Unipol Gruppo Finanziario is expected to generate 0.68 times more return on investment than ZINC MEDIA. However, Unipol Gruppo Finanziario is 1.47 times less risky than ZINC MEDIA. It trades about 0.4 of its potential returns per unit of risk. ZINC MEDIA GR is currently generating about 0.05 per unit of risk. If you would invest 1,169 in Unipol Gruppo Finanziario on November 5, 2024 and sell it today you would earn a total of 144.00 from holding Unipol Gruppo Finanziario or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Unipol Gruppo Finanziario vs. ZINC MEDIA GR
Performance |
| Timeline |
| Unipol Gruppo Finanziario |
| ZINC MEDIA GR |
Unipol Gruppo and ZINC MEDIA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Unipol Gruppo and ZINC MEDIA
The main advantage of trading using opposite Unipol Gruppo and ZINC MEDIA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, ZINC MEDIA 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 ZINC MEDIA will offset losses from the drop in ZINC MEDIA's long position.| Unipol Gruppo vs. Tokyu Construction Co | Unipol Gruppo vs. DAIRY FARM INTL | Unipol Gruppo vs. Thai Beverage Public | Unipol Gruppo vs. Suntory Beverage Food |
| ZINC MEDIA vs. AIR PRODCHEMICALS | ZINC MEDIA vs. CHEMICAL INDUSTRIES | ZINC MEDIA vs. American Airlines Group | ZINC MEDIA vs. TIANDE CHEMICAL |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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