Correlation Between Rio2 and Ascopiave SpA

Can any of the company-specific risk be diversified away by investing in both Rio2 and Ascopiave SpA 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 Rio2 and Ascopiave SpA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Rio2 and Ascopiave SpA, you can compare the effects of market volatilities on Rio2 and Ascopiave SpA 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 Rio2 with a short position of Ascopiave SpA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rio2 and Ascopiave SpA.

Diversification Opportunities for Rio2 and Ascopiave SpA

0.0

Correlation Coefficient

Rio2  Ascopiave SpA

Pay attention - limited upside

The 3 months correlation between Rio2 and Ascopiave is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Rio2 and Ascopiave SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ascopiave SpA and Rio2 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 Rio2 are associated (or correlated) with Ascopiave SpA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ascopiave SpA has no effect on the direction of Rio2 i.e., Rio2 and Ascopiave SpA go up and down completely randomly.

Pair Corralation between Rio2 and Ascopiave SpA

If you would invest  160.00  in Rio2 on August 22, 2025 and sell it today you would earn a total of  56.00  from holding Rio2 or generate 35.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Rio2  vs.  Ascopiave SpA

Rio2

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Rio2 are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, Rio2 displayed solid returns over the last few months and may actually be approaching a breakup point.

Ascopiave SpA

Risk-Adjusted Performance

Weakest

Over the last 90 days Ascopiave SpA has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Ascopiave SpA is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Rio2 and Ascopiave SpA

The main advantage of trading using opposite Rio2 and Ascopiave SpA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rio2 position performs unexpectedly, Ascopiave SpA 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 Ascopiave SpA will offset losses from the drop in Ascopiave SpA's long position.

The idea behind Rio2 and Ascopiave SpA 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.