Correlation Between Gruppo Mutuionline and International Game
Can any of the company-specific risk be diversified away by investing in both Gruppo Mutuionline and International Game 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 International Game 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 International Game Technology, you can compare the effects of market volatilities on Gruppo Mutuionline and International Game 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 International Game. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo Mutuionline and International Game.
Diversification Opportunities for Gruppo Mutuionline and International Game
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gruppo and International is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo Mutuionline SpA and International Game Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on International Game 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 International Game. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of International Game has no effect on the direction of Gruppo Mutuionline i.e., Gruppo Mutuionline and International Game go up and down completely randomly.
Pair Corralation between Gruppo Mutuionline and International Game
Assuming the 90 days trading horizon Gruppo Mutuionline SpA is expected to generate 1.05 times more return on investment than International Game. However, Gruppo Mutuionline is 1.05 times more volatile than International Game Technology. It trades about -0.08 of its potential returns per unit of risk. International Game Technology is currently generating about -0.22 per unit of risk. If you would invest 3,745 in Gruppo Mutuionline SpA on September 25, 2024 and sell it today you would lose (135.00) from holding Gruppo Mutuionline SpA or give up 3.6% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Gruppo Mutuionline SpA vs. International Game Technology
Performance |
Timeline |
Gruppo Mutuionline SpA |
International Game |
Gruppo Mutuionline and International Game Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gruppo Mutuionline and International Game
The main advantage of trading using opposite Gruppo Mutuionline and International Game positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gruppo Mutuionline position performs unexpectedly, International Game 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 International Game will offset losses from the drop in International Game's long position.Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc | Gruppo Mutuionline vs. Apple Inc |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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