Correlation Between Gruppo MutuiOnline and Ametek

Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline and Ametek 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 Gruppo MutuiOnline and Ametek into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Gruppo MutuiOnline SpA and Ametek Inc, you can compare the effects of market volatilities on Gruppo MutuiOnline and Ametek 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 Gruppo MutuiOnline with a short position of Ametek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and Ametek.

Diversification Opportunities for Gruppo MutuiOnline and Ametek

-0.66

Correlation Coefficient

Gruppo MutuiOnline  Ametek

Excellent diversification

The 3 months correlation between Gruppo and Ametek is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and Ametek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ametek Inc and Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA are associated (or correlated) with Ametek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ametek Inc has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Ametek go up and down completely randomly.

Pair Corralation between Gruppo MutuiOnline and Ametek

If you would invest (100.00) in Ametek Inc on October 12, 2024 and sell it today you would earn a total of  100.00  from holding Ametek Inc or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Gruppo MutuiOnline SpA  vs.  Ametek Inc

Gruppo MutuiOnline SpA

Risk-Adjusted Performance

0 of 100

Insignificant

Over the last 90 days Gruppo MutuiOnline SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, Gruppo MutuiOnline unveiled solid returns over the last few months and may actually be approaching a breakup point.

Ametek Inc

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Ametek Inc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Ametek is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Gruppo MutuiOnline and Ametek

The main advantage of trading using opposite Gruppo MutuiOnline and Ametek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo MutuiOnline position performs unexpectedly, Ametek 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 Ametek will offset losses from the drop in Ametek's long position.

The idea behind Gruppo MutuiOnline SpA and Ametek Inc 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.

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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.