Correlation Between Swedbank and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Swedbank 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 Swedbank and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swedbank AB and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Swedbank 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 Swedbank with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swedbank and Intesa Sanpaolo.
Diversification Opportunities for Swedbank and Intesa Sanpaolo
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Swedbank and Intesa is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Swedbank AB 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 Swedbank 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 Swedbank AB 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 Swedbank i.e., Swedbank and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Swedbank and Intesa Sanpaolo
Assuming the 90 days horizon Swedbank AB is expected to generate 0.85 times more return on investment than Intesa Sanpaolo. However, Swedbank AB is 1.17 times less risky than Intesa Sanpaolo. It trades about -0.2 of its potential returns per unit of risk. Intesa Sanpaolo SpA is currently generating about -0.21 per unit of risk. If you would invest 2,054 in Swedbank AB on August 27, 2024 and sell it today you would lose (124.00) from holding Swedbank AB or give up 6.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swedbank AB vs. Intesa Sanpaolo SpA
Performance |
| Timeline |
| Swedbank AB |
| Intesa Sanpaolo SpA |
Swedbank and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swedbank and Intesa Sanpaolo
The main advantage of trading using opposite Swedbank and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swedbank 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.| Swedbank vs. United Overseas Bank | Swedbank vs. KBC Groep NV | Swedbank vs. Jyske Bank AS | Swedbank vs. Israel Discount Bank |
| 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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