Correlation Between Gruppo MutuiOnline and First

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

By analyzing existing cross correlation between Gruppo MutuiOnline SpA and First Class Metals, you can compare the effects of market volatilities on Gruppo MutuiOnline and First 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 Gruppo MutuiOnline with a short position of First. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and First.

Diversification Opportunities for Gruppo MutuiOnline and First

0.82

Correlation Coefficient

Gruppo MutuiOnline  First

Very poor diversification

The 3 months correlation between Gruppo and First is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and First Class Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Class Metals and Gruppo MutuiOnline 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 Gruppo MutuiOnline SpA are associated (or correlated) with First. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Class Metals has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and First go up and down completely randomly.

Pair Corralation between Gruppo MutuiOnline and First

Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to under-perform the First. In addition to that, Gruppo MutuiOnline is 1.67 times more volatile than First Class Metals. It trades about -0.23 of its total potential returns per unit of risk. First Class Metals is currently generating about 0.07 per unit of volatility. If you would invest  210.00  in First Class Metals on April 23, 2025 and sell it today you would earn a total of  5.00  from holding First Class Metals or generate 2.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	45.45%
Values	Daily Returns

Gruppo MutuiOnline SpA  vs.  First Class Metals

Gruppo MutuiOnline SpA

Risk-Adjusted Performance

Modest

Over the last 90 days Gruppo MutuiOnline SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively uncertain basic indicators, Gruppo MutuiOnline unveiled solid returns over the last few months and may actually be approaching a breakup point.

First Class Metals

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in First Class Metals are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, First exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gruppo MutuiOnline and First

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

The idea behind Gruppo MutuiOnline SpA and First Class Metals 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.