Correlation Between Gruppo MutuiOnline and VPC Specialty

Can any of the company-specific risk be diversified away by investing in both Gruppo MutuiOnline and VPC Specialty 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 VPC Specialty 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 VPC Specialty Lending, you can compare the effects of market volatilities on Gruppo MutuiOnline and VPC Specialty 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 VPC Specialty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gruppo MutuiOnline and VPC Specialty.

Diversification Opportunities for Gruppo MutuiOnline and VPC Specialty

0.78

Correlation Coefficient

Gruppo MutuiOnline  VPC Specialty

Poor diversification

The 3 months correlation between Gruppo and VPC is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and VPC Specialty Lending in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VPC Specialty Lending 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 VPC Specialty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VPC Specialty Lending has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and VPC Specialty go up and down completely randomly.

Pair Corralation between Gruppo MutuiOnline and VPC Specialty

Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to generate 1.08 times more return on investment than VPC Specialty. However, Gruppo MutuiOnline is 1.08 times more volatile than VPC Specialty Lending. It trades about 0.14 of its potential returns per unit of risk. VPC Specialty Lending is currently generating about 0.11 per unit of risk. If you would invest  3,877  in Gruppo MutuiOnline SpA on April 22, 2025 and sell it today you would earn a total of  553.00  from holding Gruppo MutuiOnline SpA or generate 14.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	61.9%
Values	Daily Returns

Gruppo MutuiOnline SpA  vs.  VPC Specialty Lending

Gruppo MutuiOnline SpA

Risk-Adjusted Performance

Good

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.

VPC Specialty Lending

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in VPC Specialty Lending are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, VPC Specialty exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Gruppo MutuiOnline and VPC Specialty

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

The idea behind Gruppo MutuiOnline SpA and VPC Specialty Lending 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.