Correlation Between Assicurazioni Generali and Sampo Oyj
Can any of the company-specific risk be diversified away by investing in both Assicurazioni Generali and Sampo Oyj 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 Assicurazioni Generali and Sampo Oyj into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Assicurazioni Generali SpA and Sampo Oyj, you can compare the effects of market volatilities on Assicurazioni Generali and Sampo Oyj 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 Assicurazioni Generali with a short position of Sampo Oyj. Check out your portfolio center. Please also check ongoing floating volatility patterns of Assicurazioni Generali and Sampo Oyj.
Diversification Opportunities for Assicurazioni Generali and Sampo Oyj
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Assicurazioni and Sampo is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Assicurazioni Generali SpA and Sampo Oyj in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Oyj and Assicurazioni Generali 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 Assicurazioni Generali SpA are associated (or correlated) with Sampo Oyj. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Oyj has no effect on the direction of Assicurazioni Generali i.e., Assicurazioni Generali and Sampo Oyj go up and down completely randomly.
Pair Corralation between Assicurazioni Generali and Sampo Oyj
Assuming the 90 days horizon Assicurazioni Generali SpA is expected to under-perform the Sampo Oyj. But the pink sheet apears to be less risky and, when comparing its historical volatility, Assicurazioni Generali SpA is 1.74 times less risky than Sampo Oyj. The pink sheet trades about -0.15 of its potential returns per unit of risk. The Sampo Oyj is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 4,363 in Sampo Oyj on January 26, 2024 and sell it today you would lose (18.00) from holding Sampo Oyj or give up 0.41% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Assicurazioni Generali SpA vs. Sampo Oyj
Performance |
Timeline |
Assicurazioni Generali |
Sampo Oyj |
Assicurazioni Generali and Sampo Oyj Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Assicurazioni Generali and Sampo Oyj
The main advantage of trading using opposite Assicurazioni Generali and Sampo Oyj positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Assicurazioni Generali position performs unexpectedly, Sampo Oyj 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 Sampo Oyj will offset losses from the drop in Sampo Oyj's long position.Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Berkshire Hathaway | Assicurazioni Generali vs. Zurich Insurance Group | Assicurazioni Generali vs. American International Group |
Sampo Oyj vs. Berkshire Hathaway | Sampo Oyj vs. Berkshire Hathaway | Sampo Oyj vs. Zurich Insurance Group | Sampo Oyj vs. American International 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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