Correlation Between Intesa Sanpaolo and Deutsche Bank
Can any of the company-specific risk be diversified away by investing in both Intesa Sanpaolo and Deutsche Bank 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 Deutsche Bank 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 Deutsche Bank AG, you can compare the effects of market volatilities on Intesa Sanpaolo and Deutsche Bank 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 Deutsche Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intesa Sanpaolo and Deutsche Bank.
Diversification Opportunities for Intesa Sanpaolo and Deutsche Bank
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intesa and Deutsche is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intesa Sanpaolo SpA and Deutsche Bank AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Deutsche Bank AG 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 Deutsche Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Deutsche Bank AG has no effect on the direction of Intesa Sanpaolo i.e., Intesa Sanpaolo and Deutsche Bank go up and down completely randomly.
Pair Corralation between Intesa Sanpaolo and Deutsche Bank
Assuming the 90 days horizon Intesa Sanpaolo SpA is expected to generate 0.8 times more return on investment than Deutsche Bank. However, Intesa Sanpaolo SpA is 1.25 times less risky than Deutsche Bank. It trades about 0.1 of its potential returns per unit of risk. Deutsche Bank AG is currently generating about 0.06 per unit of risk. If you would invest 1,140 in Intesa Sanpaolo SpA on September 2, 2024 and sell it today you would earn a total of 1,167 from holding Intesa Sanpaolo SpA or generate 102.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intesa Sanpaolo SpA vs. Deutsche Bank AG
Performance |
| Timeline |
| Intesa Sanpaolo SpA |
| Deutsche Bank AG |
Intesa Sanpaolo and Deutsche Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intesa Sanpaolo and Deutsche Bank
The main advantage of trading using opposite Intesa Sanpaolo and Deutsche Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intesa Sanpaolo position performs unexpectedly, Deutsche Bank 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 Deutsche Bank will offset losses from the drop in Deutsche Bank'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 |
| Deutsche Bank vs. Banco Bradesco SA | Deutsche Bank vs. Itau Unibanco Banco | Deutsche Bank vs. Lloyds Banking Group | Deutsche Bank vs. Banco Santander Brasil |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |