Correlation Between Poste Italiane and Poste Italiane

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

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

Diversification Opportunities for Poste Italiane and Poste Italiane

0.0

Correlation Coefficient

Poste Italiane  Poste Italiane

Pay attention - limited upside

The 3 months correlation between Poste and Poste is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Poste Italiane SpA and Poste Italiane SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poste Italiane SpA and Poste Italiane 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 Poste Italiane SpA are associated (or correlated) with Poste Italiane. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poste Italiane SpA has no effect on the direction of Poste Italiane i.e., Poste Italiane and Poste Italiane go up and down completely randomly.

Pair Corralation between Poste Italiane and Poste Italiane

If you would invest  1,213  in Poste Italiane SpA on October 7, 2024 and sell it today you would earn a total of  148.00  from holding Poste Italiane SpA or generate 12.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Poste Italiane SpA  vs.  Poste Italiane SpA

Poste Italiane SpA

Risk-Adjusted Performance

0 of 100

Good

Over the last 90 days Poste Italiane SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Poste Italiane is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Poste Italiane SpA

Risk-Adjusted Performance

15 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Poste Italiane SpA are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Poste Italiane may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Poste Italiane and Poste Italiane

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

The idea behind Poste Italiane SpA and Poste Italiane 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.

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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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.