Correlation Between MEBUKI FINANCIAL and UNICREDIT SPA
Can any of the company-specific risk be diversified away by investing in both MEBUKI FINANCIAL and UNICREDIT SPA 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 MEBUKI FINANCIAL and UNICREDIT SPA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEBUKI FINANCIAL GROUP and UNICREDIT SPA ADR, you can compare the effects of market volatilities on MEBUKI FINANCIAL and UNICREDIT SPA 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 MEBUKI FINANCIAL with a short position of UNICREDIT SPA. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEBUKI FINANCIAL and UNICREDIT SPA.
Diversification Opportunities for MEBUKI FINANCIAL and UNICREDIT SPA
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MEBUKI and UNICREDIT is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding MEBUKI FINANCIAL GROUP and UNICREDIT SPA ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNICREDIT SPA ADR and MEBUKI FINANCIAL 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 MEBUKI FINANCIAL GROUP are associated (or correlated) with UNICREDIT SPA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNICREDIT SPA ADR has no effect on the direction of MEBUKI FINANCIAL i.e., MEBUKI FINANCIAL and UNICREDIT SPA go up and down completely randomly.
Pair Corralation between MEBUKI FINANCIAL and UNICREDIT SPA
Assuming the 90 days horizon MEBUKI FINANCIAL GROUP is expected to under-perform the UNICREDIT SPA. But the stock apears to be less risky and, when comparing its historical volatility, MEBUKI FINANCIAL GROUP is 1.09 times less risky than UNICREDIT SPA. The stock trades about -0.04 of its potential returns per unit of risk. The UNICREDIT SPA ADR is currently generating about 0.34 of returns per unit of risk over similar time horizon. If you would invest 1,770 in UNICREDIT SPA ADR on December 1, 2024 and sell it today you would earn a total of 730.00 from holding UNICREDIT SPA ADR or generate 41.24% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
MEBUKI FINANCIAL GROUP vs. UNICREDIT SPA ADR
Performance |
Timeline |
MEBUKI FINANCIAL |
UNICREDIT SPA ADR |
MEBUKI FINANCIAL and UNICREDIT SPA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEBUKI FINANCIAL and UNICREDIT SPA
The main advantage of trading using opposite MEBUKI FINANCIAL and UNICREDIT SPA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEBUKI FINANCIAL position performs unexpectedly, UNICREDIT SPA 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 UNICREDIT SPA will offset losses from the drop in UNICREDIT SPA's long position.MEBUKI FINANCIAL vs. China Medical System | MEBUKI FINANCIAL vs. Genertec Universal Medical | MEBUKI FINANCIAL vs. Compugroup Medical SE | MEBUKI FINANCIAL vs. PLANT VEDA FOODS |
UNICREDIT SPA vs. United Microelectronics | UNICREDIT SPA vs. Dairy Farm International | UNICREDIT SPA vs. Nanjing Panda Electronics | UNICREDIT SPA vs. STORE ELECTRONIC |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |