Correlation Between DAX Index and Intesa Sanpaolo
Specify exactly 2 symbols:
By analyzing existing cross correlation between DAX Index and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on DAX Index 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 DAX Index with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of DAX Index and Intesa Sanpaolo.
Diversification Opportunities for DAX Index and Intesa Sanpaolo
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between DAX and Intesa is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DAX Index 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 DAX Index 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 DAX Index 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 DAX Index i.e., DAX Index and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between DAX Index and Intesa Sanpaolo
Assuming the 90 days trading horizon DAX Index is expected to generate 0.57 times more return on investment than Intesa Sanpaolo. However, DAX Index is 1.75 times less risky than Intesa Sanpaolo. It trades about 0.2 of its potential returns per unit of risk. Intesa Sanpaolo SpA is currently generating about -0.16 per unit of risk. If you would invest 1,914,785 in DAX Index on September 4, 2024 and sell it today you would earn a total of 78,577 from holding DAX Index or generate 4.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
DAX Index vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
DAX Index and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
DAX Index
Pair trading matchups for DAX Index
Intesa Sanpaolo SpA
Pair trading matchups for Intesa Sanpaolo
Pair Trading with DAX Index and Intesa Sanpaolo
The main advantage of trading using opposite DAX Index and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DAX Index 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.| DAX Index vs. LION ONE METALS | DAX Index vs. KENNAMETAL INC | DAX Index vs. HYATT HOTELS A | DAX Index vs. Zijin Mining Group |
| Intesa Sanpaolo vs. BNP PARIBAS ADR | Intesa Sanpaolo vs. Lloyds Banking Group | Intesa Sanpaolo vs. KBC Group NV |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |