Correlation Between Unipol Gruppo and ALLIANZ SE
Can any of the company-specific risk be diversified away by investing in both Unipol Gruppo and ALLIANZ SE 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 Unipol Gruppo and ALLIANZ SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Unipol Gruppo Finanziario and ALLIANZ SE UNSPADR, you can compare the effects of market volatilities on Unipol Gruppo and ALLIANZ SE 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 Unipol Gruppo with a short position of ALLIANZ SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Unipol Gruppo and ALLIANZ SE.
Diversification Opportunities for Unipol Gruppo and ALLIANZ SE
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Unipol and ALLIANZ is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Unipol Gruppo Finanziario and ALLIANZ SE UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALLIANZ SE UNSPADR and Unipol Gruppo 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 Unipol Gruppo Finanziario are associated (or correlated) with ALLIANZ SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALLIANZ SE UNSPADR has no effect on the direction of Unipol Gruppo i.e., Unipol Gruppo and ALLIANZ SE go up and down completely randomly.
Pair Corralation between Unipol Gruppo and ALLIANZ SE
Assuming the 90 days trading horizon Unipol Gruppo Finanziario is expected to generate 1.08 times more return on investment than ALLIANZ SE. However, Unipol Gruppo is 1.08 times more volatile than ALLIANZ SE UNSPADR. It trades about 0.0 of its potential returns per unit of risk. ALLIANZ SE UNSPADR is currently generating about 0.0 per unit of risk. If you would invest 1,160 in Unipol Gruppo Finanziario on September 23, 2024 and sell it today you would lose (4.00) from holding Unipol Gruppo Finanziario or give up 0.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Unipol Gruppo Finanziario vs. ALLIANZ SE UNSPADR
Performance |
Timeline |
Unipol Gruppo Finanziario |
ALLIANZ SE UNSPADR |
Unipol Gruppo and ALLIANZ SE Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Unipol Gruppo and ALLIANZ SE
The main advantage of trading using opposite Unipol Gruppo and ALLIANZ SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Unipol Gruppo position performs unexpectedly, ALLIANZ SE 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 ALLIANZ SE will offset losses from the drop in ALLIANZ SE's long position.Unipol Gruppo vs. Allianz SE | Unipol Gruppo vs. ALLIANZ SE UNSPADR | Unipol Gruppo vs. AXA SA | Unipol Gruppo vs. ASSGENERALI ADR 12EO |
ALLIANZ SE vs. Allianz SE | ALLIANZ SE vs. AXA SA | ALLIANZ SE vs. ASSGENERALI ADR 12EO | ALLIANZ SE vs. Principal Financial 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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