Correlation Between Sberbank and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Sberbank 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 Sberbank and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sberbank Of Russia and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Sberbank 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 Sberbank with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sberbank and Intesa Sanpaolo.
Diversification Opportunities for Sberbank and Intesa Sanpaolo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sberbank and Intesa is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sberbank Of Russia 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 Sberbank 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 Sberbank Of Russia 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 Sberbank i.e., Sberbank and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Sberbank and Intesa Sanpaolo
If you would invest 2,159 in Intesa Sanpaolo SpA on February 1, 2024 and sell it today you would earn a total of 102.00 from holding Intesa Sanpaolo SpA or generate 4.72% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Sberbank Of Russia vs. Intesa Sanpaolo SpA
Performance |
Timeline |
Sberbank Of Russia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intesa Sanpaolo SpA |
Sberbank and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sberbank and Intesa Sanpaolo
The main advantage of trading using opposite Sberbank and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sberbank 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.Sberbank vs. Ziff Davis | Sberbank vs. Black Hills | Sberbank vs. ScanSource | Sberbank vs. Fidus Investment Corp |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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