Correlation Between Intesa Sanpaolo and Bank of Hawaii
Can any of the company-specific risk be diversified away by investing in both Intesa Sanpaolo and Bank of Hawaii 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 Bank of Hawaii 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 Bank of Hawaii, you can compare the effects of market volatilities on Intesa Sanpaolo and Bank of Hawaii 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 Bank of Hawaii. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intesa Sanpaolo and Bank of Hawaii.
Diversification Opportunities for Intesa Sanpaolo and Bank of Hawaii
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intesa and Bank is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Intesa Sanpaolo SpA and Bank of Hawaii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Hawaii 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 Bank of Hawaii. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Hawaii has no effect on the direction of Intesa Sanpaolo i.e., Intesa Sanpaolo and Bank of Hawaii go up and down completely randomly.
Pair Corralation between Intesa Sanpaolo and Bank of Hawaii
Assuming the 90 days horizon Intesa Sanpaolo is expected to generate 83.58 times less return on investment than Bank of Hawaii. But when comparing it to its historical volatility, Intesa Sanpaolo SpA is 1.4 times less risky than Bank of Hawaii. It trades about 0.0 of its potential returns per unit of risk. Bank of Hawaii is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,442 in Bank of Hawaii on September 2, 2024 and sell it today you would earn a total of 2,456 from holding Bank of Hawaii or generate 45.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intesa Sanpaolo SpA vs. Bank of Hawaii
Performance |
| Timeline |
| Intesa Sanpaolo SpA |
| Bank of Hawaii |
Intesa Sanpaolo and Bank of Hawaii Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intesa Sanpaolo and Bank of Hawaii
The main advantage of trading using opposite Intesa Sanpaolo and Bank of Hawaii positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intesa Sanpaolo position performs unexpectedly, Bank of Hawaii 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 Bank of Hawaii will offset losses from the drop in Bank of Hawaii's long position.| Intesa Sanpaolo vs. Banco Do Brasil | Intesa Sanpaolo vs. KBC Groep NV | Intesa Sanpaolo vs. Fentura Financial | Intesa Sanpaolo vs. Credit Agricole SA |
| Bank of Hawaii vs. Affinity Bancshares | Bank of Hawaii vs. Auburn National Bancorporation | Bank of Hawaii vs. First Community | Bank of Hawaii vs. LINKBANCORP |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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