Correlation Between Talanx AG and Assicurazioni Generali
Can any of the company-specific risk be diversified away by investing in both Talanx AG and Assicurazioni Generali 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 Talanx AG and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Talanx AG and Assicurazioni Generali SpA, you can compare the effects of market volatilities on Talanx AG and Assicurazioni Generali 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 Talanx AG with a short position of Assicurazioni Generali. Check out your portfolio center. Please also check ongoing floating volatility patterns of Talanx AG and Assicurazioni Generali.
Diversification Opportunities for Talanx AG and Assicurazioni Generali
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Talanx and Assicurazioni is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Talanx AG and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Talanx AG 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 Talanx AG are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Talanx AG i.e., Talanx AG and Assicurazioni Generali go up and down completely randomly.
Pair Corralation between Talanx AG and Assicurazioni Generali
Assuming the 90 days trading horizon Talanx AG is expected to under-perform the Assicurazioni Generali. In addition to that, Talanx AG is 1.22 times more volatile than Assicurazioni Generali SpA. It trades about -0.1 of its total potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about -0.01 per unit of volatility. If you would invest 3,416 in Assicurazioni Generali SpA on August 14, 2025 and sell it today you would lose (33.00) from holding Assicurazioni Generali SpA or give up 0.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Talanx AG vs. Assicurazioni Generali SpA
Performance |
| Timeline |
| Talanx AG |
| Assicurazioni Generali |
Talanx AG and Assicurazioni Generali Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Talanx AG and Assicurazioni Generali
The main advantage of trading using opposite Talanx AG and Assicurazioni Generali positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Talanx AG position performs unexpectedly, Assicurazioni Generali 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 Assicurazioni Generali will offset losses from the drop in Assicurazioni Generali's long position.| Talanx AG vs. Algonquin Power Utilities | Talanx AG vs. Canadian Utilities Limited | Talanx AG vs. Hemisphere Energy Corp | Talanx AG vs. AFRICAN MEDIA ENT |
| Assicurazioni Generali vs. TCL MULTIMEDIA TECH | Assicurazioni Generali vs. Galaxy Entertainment Group | Assicurazioni Generali vs. ATRESMEDIA | Assicurazioni Generali vs. LBG MEDIA PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |