Correlation Between FORWARD AIR and Gruppo Mutuionline

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

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

Diversification Opportunities for FORWARD AIR and Gruppo Mutuionline

0.04

Correlation Coefficient

FORWARD AIR  Gruppo Mutuionline

Significant diversification

The 3 months correlation between FORWARD and Gruppo is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding FORWARD AIR P and Gruppo Mutuionline SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gruppo Mutuionline SpA and FORWARD AIR 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 FORWARD AIR P are associated (or correlated) with Gruppo Mutuionline. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gruppo Mutuionline SpA has no effect on the direction of FORWARD AIR i.e., FORWARD AIR and Gruppo Mutuionline go up and down completely randomly.

Pair Corralation between FORWARD AIR and Gruppo Mutuionline

Assuming the 90 days horizon FORWARD AIR P is expected to under-perform the Gruppo Mutuionline. In addition to that, FORWARD AIR is 2.11 times more volatile than Gruppo Mutuionline SpA. It trades about -0.16 of its total potential returns per unit of risk. Gruppo Mutuionline SpA is currently generating about -0.02 per unit of volatility. If you would invest  3,610  in Gruppo Mutuionline SpA on December 21, 2024 and sell it today you would lose (130.00) from holding Gruppo Mutuionline SpA or give up 3.6% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

FORWARD AIR P  vs.  Gruppo Mutuionline SpA

FORWARD AIR P

Risk-Adjusted Performance

Very Weak

Over the last 90 days FORWARD AIR P has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Gruppo Mutuionline SpA

Risk-Adjusted Performance

Very Weak

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 stable basic indicators, Gruppo Mutuionline 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 FORWARD AIR and Gruppo Mutuionline

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

The idea behind FORWARD AIR P and Gruppo Mutuionline 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.