Correlation Between 90331HPL1 and Saipem SpA
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By analyzing existing cross correlation between US BANK NATIONAL and Saipem SpA, you can compare the effects of market volatilities on 90331HPL1 and Saipem SpA 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 90331HPL1 with a short position of Saipem SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of 90331HPL1 and Saipem SpA.
Diversification Opportunities for 90331HPL1 and Saipem SpA
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 90331HPL1 and Saipem is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding US BANK NATIONAL and Saipem SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Saipem SpA and 90331HPL1 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 US BANK NATIONAL are associated (or correlated) with Saipem SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Saipem SpA has no effect on the direction of 90331HPL1 i.e., 90331HPL1 and Saipem SpA go up and down completely randomly.
Pair Corralation between 90331HPL1 and Saipem SpA
Assuming the 90 days trading horizon US BANK NATIONAL is expected to generate 27.18 times more return on investment than Saipem SpA. However, 90331HPL1 is 27.18 times more volatile than Saipem SpA. It trades about 0.09 of its potential returns per unit of risk. Saipem SpA is currently generating about 0.06 per unit of risk. If you would invest 9,516 in US BANK NATIONAL on September 23, 2024 and sell it today you would earn a total of 31.00 from holding US BANK NATIONAL or generate 0.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 62.98% |
Values | Daily Returns |
US BANK NATIONAL vs. Saipem SpA
Performance |
Timeline |
US BANK NATIONAL |
Saipem SpA |
90331HPL1 and Saipem SpA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 90331HPL1 and Saipem SpA
The main advantage of trading using opposite 90331HPL1 and Saipem SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 90331HPL1 position performs unexpectedly, Saipem SpA 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 Saipem SpA will offset losses from the drop in Saipem SpA's long position.90331HPL1 vs. AEP TEX INC | 90331HPL1 vs. GBX International Group | 90331HPL1 vs. Bank of America | 90331HPL1 vs. PSQ Holdings |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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