Correlation Between Mount Logan and Azimut Holding

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

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

Diversification Opportunities for Mount Logan and Azimut Holding

0.46

Correlation Coefficient

Mount Logan  Azimut Holding

Very weak diversification

The 3 months correlation between Mount and Azimut is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Mount Logan Capital and Azimut Holding SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Azimut Holding SpA and Mount Logan 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 Mount Logan Capital are associated (or correlated) with Azimut Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Azimut Holding SpA has no effect on the direction of Mount Logan i.e., Mount Logan and Azimut Holding go up and down completely randomly.

Pair Corralation between Mount Logan and Azimut Holding

If you would invest  4,448  in Azimut Holding SpA on September 4, 2024 and sell it today you would earn a total of  0.00  from holding Azimut Holding SpA or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.75%
Values	Daily Returns

Mount Logan Capital  vs.  Azimut Holding SpA

Mount Logan Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mount Logan Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical and fundamental indicators, Mount Logan is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Azimut Holding SpA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Azimut Holding SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical indicators, Azimut Holding is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Mount Logan and Azimut Holding

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

The idea behind Mount Logan Capital and Azimut Holding 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.