Correlation Between Swiss Life and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Swiss Life and Assicurazioni Generali 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 Swiss Life and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swiss Life Holding and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Swiss Life and Assicurazioni Generali 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 Swiss Life with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swiss Life and Assicurazioni Generali.
Diversification Opportunities for Swiss Life and Assicurazioni Generali
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swiss and Assicurazioni is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Swiss Life Holding and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Swiss Life 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 Swiss Life Holding are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Swiss Life i.e., Swiss Life and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Swiss Life and Assicurazioni Generali
Assuming the 90 days horizon Swiss Life Holding is expected to under-perform the Assicurazioni Generali. In addition to that, Swiss Life is 1.29 times more volatile than Assicurazioni Generali SpA. It trades about -0.06 of its total potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.32 per unit of volatility. If you would invest 1,347 in Assicurazioni Generali SpA on September 15, 2024 and sell it today you would earn a total of 140.00 from holding Assicurazioni Generali SpA or generate 10.39% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Swiss Life Holding vs. Assicurazioni Generali SpA
Performance |
Timeline |
Swiss Life Holding |
Assicurazioni Generali |
Swiss Life and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Swiss Life and Assicurazioni Generali
The main advantage of trading using opposite Swiss Life and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swiss Life position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.Swiss Life vs. Berkshire Hathaway | Swiss Life vs. Berkshire Hathaway | Swiss Life vs. Zurich Insurance Group | Swiss Life vs. Zurich Insurance Group |
Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. Zurich Insurance Group |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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