Correlation Between UNICREDIT SPA and FIRST SAVINGS
Can any of the company-specific risk be diversified away by investing in both UNICREDIT SPA and FIRST SAVINGS 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 UNICREDIT SPA and FIRST SAVINGS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between UNICREDIT SPA ADR and FIRST SAVINGS FINL, you can compare the effects of market volatilities on UNICREDIT SPA and FIRST SAVINGS 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 UNICREDIT SPA with a short position of FIRST SAVINGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of UNICREDIT SPA and FIRST SAVINGS.
Diversification Opportunities for UNICREDIT SPA and FIRST SAVINGS
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between UNICREDIT and FIRST is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding UNICREDIT SPA ADR and FIRST SAVINGS FINL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIRST SAVINGS FINL and UNICREDIT SPA 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 UNICREDIT SPA ADR are associated (or correlated) with FIRST SAVINGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIRST SAVINGS FINL has no effect on the direction of UNICREDIT SPA i.e., UNICREDIT SPA and FIRST SAVINGS go up and down completely randomly.
Pair Corralation between UNICREDIT SPA and FIRST SAVINGS
Assuming the 90 days trading horizon UNICREDIT SPA ADR is expected to generate 0.66 times more return on investment than FIRST SAVINGS. However, UNICREDIT SPA ADR is 1.51 times less risky than FIRST SAVINGS. It trades about 0.18 of its potential returns per unit of risk. FIRST SAVINGS FINL is currently generating about 0.02 per unit of risk. If you would invest 2,440 in UNICREDIT SPA ADR on April 23, 2025 and sell it today you would earn a total of 460.00 from holding UNICREDIT SPA ADR or generate 18.85% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 98.44% |
Values | Daily Returns |
UNICREDIT SPA ADR vs. FIRST SAVINGS FINL
Performance |
Timeline |
UNICREDIT SPA ADR |
FIRST SAVINGS FINL |
UNICREDIT SPA and FIRST SAVINGS Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with UNICREDIT SPA and FIRST SAVINGS
The main advantage of trading using opposite UNICREDIT SPA and FIRST SAVINGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if UNICREDIT SPA position performs unexpectedly, FIRST SAVINGS 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 SAVINGS will offset losses from the drop in FIRST SAVINGS's long position.UNICREDIT SPA vs. Moneysupermarket Group PLC | UNICREDIT SPA vs. Fevertree Drinks PLC | UNICREDIT SPA vs. Compagnie Plastic Omnium | UNICREDIT SPA vs. Applied Materials |
FIRST SAVINGS vs. Mitsubishi Gas Chemical | FIRST SAVINGS vs. KINGBOARD CHEMICAL | FIRST SAVINGS vs. Mobilezone Holding AG | FIRST SAVINGS vs. FIH MOBILE |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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