Correlation Between CVS Health and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both CVS Health 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 CVS Health and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVS Health and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on CVS Health 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 CVS Health with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVS Health and Intesa Sanpaolo.
Diversification Opportunities for CVS Health and Intesa Sanpaolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVS and Intesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVS Health 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 CVS Health 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 CVS Health 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 CVS Health i.e., CVS Health and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between CVS Health and Intesa Sanpaolo
If you would invest 91,889 in CVS Health on November 6, 2024 and sell it today you would earn a total of 25,311 from holding CVS Health or generate 27.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CVS Health vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| CVS Health |
| Intesa Sanpaolo SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CVS Health and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVS Health and Intesa Sanpaolo
The main advantage of trading using opposite CVS Health and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVS Health 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.| CVS Health vs. UnitedHealth Group Incorporated | CVS Health vs. Air Transport Services | CVS Health vs. Ameriprise Financial | CVS Health vs. Verizon Communications |
| Intesa Sanpaolo vs. The Bank of | Intesa Sanpaolo vs. Ameriprise Financial | Intesa Sanpaolo vs. Prudential Financial | Intesa Sanpaolo vs. Genworth Financial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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