Correlation Between Intesa Sanpaolo and KEISEI EL
Can any of the company-specific risk be diversified away by investing in both Intesa Sanpaolo and KEISEI EL 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 Intesa Sanpaolo and KEISEI EL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intesa Sanpaolo SpA and KEISEI EL RAILWAY, you can compare the effects of market volatilities on Intesa Sanpaolo and KEISEI EL 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 Intesa Sanpaolo with a short position of KEISEI EL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intesa Sanpaolo and KEISEI EL.
Diversification Opportunities for Intesa Sanpaolo and KEISEI EL
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intesa and KEISEI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Intesa Sanpaolo SpA and KEISEI EL RAILWAY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEISEI EL RAILWAY and Intesa Sanpaolo 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 Intesa Sanpaolo SpA are associated (or correlated) with KEISEI EL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEISEI EL RAILWAY has no effect on the direction of Intesa Sanpaolo i.e., Intesa Sanpaolo and KEISEI EL go up and down completely randomly.
Pair Corralation between Intesa Sanpaolo and KEISEI EL
Assuming the 90 days horizon Intesa Sanpaolo SpA is expected to generate 0.54 times more return on investment than KEISEI EL. However, Intesa Sanpaolo SpA is 1.85 times less risky than KEISEI EL. It trades about 0.08 of its potential returns per unit of risk. KEISEI EL RAILWAY is currently generating about -0.02 per unit of risk. If you would invest 358.00 in Intesa Sanpaolo SpA on September 25, 2024 and sell it today you would earn a total of 24.00 from holding Intesa Sanpaolo SpA or generate 6.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intesa Sanpaolo SpA vs. KEISEI EL RAILWAY
Performance |
| Timeline |
| Intesa Sanpaolo SpA |
| KEISEI EL RAILWAY |
Intesa Sanpaolo and KEISEI EL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intesa Sanpaolo and KEISEI EL
The main advantage of trading using opposite Intesa Sanpaolo and KEISEI EL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intesa Sanpaolo position performs unexpectedly, KEISEI EL 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 KEISEI EL will offset losses from the drop in KEISEI EL's long position.| Intesa Sanpaolo vs. BNP Paribas SA | Intesa Sanpaolo vs. BNP PARIBAS ADR | Intesa Sanpaolo vs. Lloyds Banking Group | Intesa Sanpaolo vs. Lloyds Banking 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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