Correlation Between Citigroup and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Citigroup and Intesa Sanpaolo 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 Citigroup and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Citigroup and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Citigroup and Intesa Sanpaolo 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 Citigroup with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citigroup and Intesa Sanpaolo.
Diversification Opportunities for Citigroup and Intesa Sanpaolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citigroup and Intesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Citigroup and Intesa Sanpaolo SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intesa Sanpaolo SpA and Citigroup 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 Citigroup are associated (or correlated) with Intesa Sanpaolo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intesa Sanpaolo SpA has no effect on the direction of Citigroup i.e., Citigroup and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Citigroup and Intesa Sanpaolo
If you would invest 4,959 in Citigroup on September 24, 2024 and sell it today you would earn a total of 1,960 from holding Citigroup or generate 39.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Citigroup vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| Citigroup |
| Intesa Sanpaolo SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Citigroup and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citigroup and Intesa Sanpaolo
The main advantage of trading using opposite Citigroup and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citigroup position performs unexpectedly, Intesa Sanpaolo 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 Intesa Sanpaolo will offset losses from the drop in Intesa Sanpaolo's long position.The idea behind Citigroup and Intesa Sanpaolo 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.| Intesa Sanpaolo vs. Grupo Carso SAB | Intesa Sanpaolo vs. The Bank of | Intesa Sanpaolo vs. McEwen Mining | Intesa Sanpaolo vs. Micron Technology |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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