Correlation Between Xtrackers LevDAX and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Xtrackers LevDAX 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 Xtrackers LevDAX and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Xtrackers LevDAX and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Xtrackers LevDAX 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 Xtrackers LevDAX with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xtrackers LevDAX and Intesa Sanpaolo.
Diversification Opportunities for Xtrackers LevDAX and Intesa Sanpaolo
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xtrackers and Intesa is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Xtrackers LevDAX 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 Xtrackers LevDAX 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 Xtrackers LevDAX 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 Xtrackers LevDAX i.e., Xtrackers LevDAX and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Xtrackers LevDAX and Intesa Sanpaolo
Assuming the 90 days trading horizon Xtrackers LevDAX is expected to generate 0.97 times more return on investment than Intesa Sanpaolo. However, Xtrackers LevDAX is 1.03 times less risky than Intesa Sanpaolo. It trades about -0.07 of its potential returns per unit of risk. Intesa Sanpaolo SpA is currently generating about -0.11 per unit of risk. If you would invest 18,948 in Xtrackers LevDAX on August 31, 2024 and sell it today you would lose (526.00) from holding Xtrackers LevDAX or give up 2.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Xtrackers LevDAX vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| Xtrackers LevDAX |
| Intesa Sanpaolo SpA |
Xtrackers LevDAX and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xtrackers LevDAX and Intesa Sanpaolo
The main advantage of trading using opposite Xtrackers LevDAX and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xtrackers LevDAX 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.| Xtrackers LevDAX vs. Xtrackers II Global | Xtrackers LevDAX vs. Xtrackers FTSE | Xtrackers LevDAX vs. Xtrackers SP 500 | Xtrackers LevDAX vs. Xtrackers MSCI |
| Intesa Sanpaolo vs. Hollywood Bowl Group | Intesa Sanpaolo vs. Playa Hotels Resorts | Intesa Sanpaolo vs. Singapore Airlines Limited | Intesa Sanpaolo vs. United Utilities Group |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| CEOs Directory Screen CEOs from public companies around the world |