Correlation Between Visa and Unipol Gruppo
Can any of the company-specific risk be diversified away by investing in both Visa and Unipol Gruppo 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 Visa and Unipol Gruppo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Visa Class A and Unipol Gruppo SpA, you can compare the effects of market volatilities on Visa and Unipol Gruppo 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 Visa with a short position of Unipol Gruppo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Visa and Unipol Gruppo.
Diversification Opportunities for Visa and Unipol Gruppo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Visa and Unipol is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Visa Class A and Unipol Gruppo SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipol Gruppo SpA and Visa 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 Visa Class A are associated (or correlated) with Unipol Gruppo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unipol Gruppo SpA has no effect on the direction of Visa i.e., Visa and Unipol Gruppo go up and down completely randomly.
Pair Corralation between Visa and Unipol Gruppo
Taking into account the 90-day investment horizon Visa is expected to generate 4.24 times less return on investment than Unipol Gruppo. But when comparing it to its historical volatility, Visa Class A is 5.06 times less risky than Unipol Gruppo. It trades about 0.09 of its potential returns per unit of risk. Unipol Gruppo SpA is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 202.00 in Unipol Gruppo SpA on September 19, 2024 and sell it today you would earn a total of 271.00 from holding Unipol Gruppo SpA or generate 134.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 59.68% |
| Values | Daily Returns |
Visa Class A vs. Unipol Gruppo SpA
Performance |
| Timeline |
| Visa Class A |
| Unipol Gruppo SpA |
Visa and Unipol Gruppo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Visa and Unipol Gruppo
The main advantage of trading using opposite Visa and Unipol Gruppo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Visa position performs unexpectedly, Unipol Gruppo 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 Unipol Gruppo will offset losses from the drop in Unipol Gruppo's long position.The idea behind Visa Class A and Unipol Gruppo SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Unipol Gruppo vs. Athene Holding | Unipol Gruppo vs. Assicurazioni Generali SpA | Unipol Gruppo vs. AXA SA | Unipol Gruppo vs. Assicurazioni Generali SpA |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |