Correlation Between Nasdaq and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Nasdaq 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 Nasdaq and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nasdaq Inc and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Nasdaq 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 Nasdaq with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nasdaq and Intesa Sanpaolo.
Diversification Opportunities for Nasdaq and Intesa Sanpaolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Nasdaq and Intesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Nasdaq Inc 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 Nasdaq 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 Nasdaq Inc 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 Nasdaq i.e., Nasdaq and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Nasdaq and Intesa Sanpaolo
If you would invest (100.00) in Intesa Sanpaolo SpA on September 24, 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 |
Nasdaq Inc vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| Nasdaq Inc |
| Intesa Sanpaolo SpA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nasdaq and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nasdaq and Intesa Sanpaolo
The main advantage of trading using opposite Nasdaq and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nasdaq 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.The idea behind Nasdaq Inc and Intesa Sanpaolo SpA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Intesa Sanpaolo vs. Grupo Carso SAB | Intesa Sanpaolo vs. The Bank of | Intesa Sanpaolo vs. McEwen Mining | Intesa Sanpaolo vs. Micron Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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