Correlation Between NYSE Composite and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both NYSE Composite 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 NYSE Composite and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on NYSE Composite 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 NYSE Composite with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Intesa Sanpaolo.
Diversification Opportunities for NYSE Composite and Intesa Sanpaolo
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between NYSE and Intesa is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite 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 NYSE Composite 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 NYSE Composite 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 NYSE Composite i.e., NYSE Composite and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between NYSE Composite and Intesa Sanpaolo
Assuming the 90 days trading horizon NYSE Composite is expected to generate 1.62 times less return on investment than Intesa Sanpaolo. But when comparing it to its historical volatility, NYSE Composite is 2.13 times less risky than Intesa Sanpaolo. It trades about 0.13 of its potential returns per unit of risk. Intesa Sanpaolo SpA is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,792 in Intesa Sanpaolo SpA on August 28, 2024 and sell it today you would earn a total of 565.00 from holding Intesa Sanpaolo SpA or generate 31.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.52% |
| Values | Daily Returns |
NYSE Composite vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
NYSE Composite and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Intesa Sanpaolo SpA
Pair trading matchups for Intesa Sanpaolo
Pair Trading with NYSE Composite and Intesa Sanpaolo
The main advantage of trading using opposite NYSE Composite and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite 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.| NYSE Composite vs. Vita Coco | NYSE Composite vs. Franklin Wireless Corp | NYSE Composite vs. Ambev SA ADR | NYSE Composite vs. Toro Co |
| Intesa Sanpaolo vs. Banco Do Brasil | Intesa Sanpaolo vs. KBC Groep NV | Intesa Sanpaolo vs. Fentura Financial | Intesa Sanpaolo vs. Credit Agricole SA |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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