Correlation Between Microsoft and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Microsoft 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 Microsoft and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Microsoft and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Microsoft 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 Microsoft with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Microsoft and Intesa Sanpaolo.
Diversification Opportunities for Microsoft and Intesa Sanpaolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Microsoft and Intesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Microsoft 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 Microsoft 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 Microsoft 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 Microsoft i.e., Microsoft and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Microsoft and Intesa Sanpaolo
If you would invest (100.00) in Intesa Sanpaolo SpA on December 11, 2024 and sell it today you would earn a total of 100.00 from holding Intesa Sanpaolo SpA or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Microsoft vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| Microsoft |
| Intesa Sanpaolo SpA |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Microsoft and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Microsoft and Intesa Sanpaolo
The main advantage of trading using opposite Microsoft and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Microsoft 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.| Microsoft vs. Palo Alto Networks | Microsoft vs. Uipath Inc | Microsoft vs. Adobe Systems Incorporated | Microsoft vs. Crowdstrike Holdings |
| Intesa Sanpaolo vs. Desarrolladora Homex SAB | Intesa Sanpaolo vs. Martin Marietta Materials | Intesa Sanpaolo vs. FIBRA Storage | Intesa Sanpaolo vs. Ameriprise Financial |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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