Correlation Between Gruppo MutuiOnline and Workspace Group

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

Diversification Opportunities for Gruppo MutuiOnline and Workspace Group

-0.57

Correlation Coefficient

Gruppo MutuiOnline  Workspace Group

Excellent diversification

The 3 months correlation between Gruppo and Workspace is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gruppo MutuiOnline SpA and Workspace Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Workspace Group PLC 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 Workspace Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Workspace Group PLC has no effect on the direction of Gruppo MutuiOnline i.e., Gruppo MutuiOnline and Workspace Group go up and down completely randomly.

Pair Corralation between Gruppo MutuiOnline and Workspace Group

Assuming the 90 days trading horizon Gruppo MutuiOnline SpA is expected to generate 1.72 times more return on investment than Workspace Group. However, Gruppo MutuiOnline is 1.72 times more volatile than Workspace Group PLC. It trades about 0.14 of its potential returns per unit of risk. Workspace Group PLC is currently generating about -0.05 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 Against
Strength	Very Weak
Accuracy	61.9%
Values	Daily Returns

Gruppo MutuiOnline SpA  vs.  Workspace Group PLC

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.

Workspace Group PLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Workspace Group PLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical and fundamental indicators, Workspace Group is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Gruppo MutuiOnline and Workspace Group

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

The idea behind Gruppo MutuiOnline SpA and Workspace Group PLC 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.