Correlation Between ALLIANZ SE and Unipol Gruppo
Can any of the company-specific risk be diversified away by investing in both ALLIANZ SE 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 ALLIANZ SE and Unipol Gruppo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ALLIANZ SE UNSPADR and Unipol Gruppo Finanziario, you can compare the effects of market volatilities on ALLIANZ SE 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 ALLIANZ SE with a short position of Unipol Gruppo. Check out your portfolio center. Please also check ongoing floating volatility patterns of ALLIANZ SE and Unipol Gruppo.
Diversification Opportunities for ALLIANZ SE and Unipol Gruppo
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ALLIANZ and Unipol is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding ALLIANZ SE UNSPADR and Unipol Gruppo Finanziario in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unipol Gruppo Finanziario and ALLIANZ SE 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 ALLIANZ SE UNSPADR 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 Finanziario has no effect on the direction of ALLIANZ SE i.e., ALLIANZ SE and Unipol Gruppo go up and down completely randomly.
Pair Corralation between ALLIANZ SE and Unipol Gruppo
Assuming the 90 days trading horizon ALLIANZ SE UNSPADR is expected to generate 1.39 times more return on investment than Unipol Gruppo. However, ALLIANZ SE is 1.39 times more volatile than Unipol Gruppo Finanziario. It trades about 0.06 of its potential returns per unit of risk. Unipol Gruppo Finanziario is currently generating about 0.03 per unit of risk. If you would invest 2,840 in ALLIANZ SE UNSPADR on September 22, 2024 and sell it today you would earn a total of 60.00 from holding ALLIANZ SE UNSPADR or generate 2.11% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
ALLIANZ SE UNSPADR vs. Unipol Gruppo Finanziario
Performance |
Timeline |
ALLIANZ SE UNSPADR |
Unipol Gruppo Finanziario |
ALLIANZ SE and Unipol Gruppo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ALLIANZ SE and Unipol Gruppo
The main advantage of trading using opposite ALLIANZ SE and Unipol Gruppo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ALLIANZ SE 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.ALLIANZ SE vs. Allianz SE | ALLIANZ SE vs. AXA SA | ALLIANZ SE vs. ASSGENERALI ADR 12EO | ALLIANZ SE vs. Principal Financial Group |
Unipol Gruppo vs. Allianz SE | Unipol Gruppo vs. ALLIANZ SE UNSPADR | Unipol Gruppo vs. AXA SA | Unipol Gruppo vs. ASSGENERALI ADR 12EO |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |