Correlation Between Prysmian SPA and Wolters Kluwer

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

By analyzing existing cross correlation between Prysmian SPA ADR and Wolters Kluwer NV, you can compare the effects of market volatilities on Prysmian SPA and Wolters Kluwer 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 Prysmian SPA with a short position of Wolters Kluwer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prysmian SPA and Wolters Kluwer.

Diversification Opportunities for Prysmian SPA and Wolters Kluwer

0.61

Correlation Coefficient

Prysmian SPA  Wolters Kluwer

Poor diversification

The 3 months correlation between Prysmian and Wolters is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Prysmian SPA ADR and Wolters Kluwer NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wolters Kluwer NV and Prysmian 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 Prysmian SPA ADR are associated (or correlated) with Wolters Kluwer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wolters Kluwer NV has no effect on the direction of Prysmian SPA i.e., Prysmian SPA and Wolters Kluwer go up and down completely randomly.

Pair Corralation between Prysmian SPA and Wolters Kluwer

Assuming the 90 days horizon Prysmian SPA ADR is expected to generate 0.65 times more return on investment than Wolters Kluwer. However, Prysmian SPA ADR is 1.54 times less risky than Wolters Kluwer. It trades about 0.02 of its potential returns per unit of risk. Wolters Kluwer NV is currently generating about -0.09 per unit of risk. If you would invest  5,186  in Prysmian SPA ADR on October 6, 2025 and sell it today you would earn a total of  79.00  from holding Prysmian SPA ADR or generate 1.52% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Prysmian SPA ADR  vs.  Wolters Kluwer NV

Prysmian SPA ADR

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Prysmian SPA ADR are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Prysmian SPA is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Wolters Kluwer NV

Risk-Adjusted Performance

Weakest

Over the last 90 days Wolters Kluwer NV has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in February 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Prysmian SPA and Wolters Kluwer

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

The idea behind Prysmian SPA ADR and Wolters Kluwer NV 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.