Correlation Between Bank of Hawaii and Intesa Sanpaolo
Can any of the company-specific risk be diversified away by investing in both Bank of Hawaii 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 Bank of Hawaii and Intesa Sanpaolo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bank of Hawaii and Intesa Sanpaolo SpA, you can compare the effects of market volatilities on Bank of Hawaii 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 Bank of Hawaii with a short position of Intesa Sanpaolo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Hawaii and Intesa Sanpaolo.
Diversification Opportunities for Bank of Hawaii and Intesa Sanpaolo
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Intesa is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Hawaii 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 Bank of Hawaii 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 Bank of Hawaii 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 Bank of Hawaii i.e., Bank of Hawaii and Intesa Sanpaolo go up and down completely randomly.
Pair Corralation between Bank of Hawaii and Intesa Sanpaolo
Considering the 90-day investment horizon Bank of Hawaii is expected to generate 1.55 times more return on investment than Intesa Sanpaolo. However, Bank of Hawaii is 1.55 times more volatile than Intesa Sanpaolo SpA. It trades about 0.13 of its potential returns per unit of risk. Intesa Sanpaolo SpA is currently generating about 0.03 per unit of risk. If you would invest 6,333 in Bank of Hawaii on September 14, 2024 and sell it today you would earn a total of 1,138 from holding Bank of Hawaii or generate 17.97% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Bank of Hawaii vs. Intesa Sanpaolo SpA
Performance |
Timeline |
Bank of Hawaii |
Intesa Sanpaolo SpA |
Bank of Hawaii and Intesa Sanpaolo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Bank of Hawaii and Intesa Sanpaolo
The main advantage of trading using opposite Bank of Hawaii and Intesa Sanpaolo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Hawaii 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.Bank of Hawaii vs. Central Pacific Financial | Bank of Hawaii vs. Territorial Bancorp | Bank of Hawaii vs. First Bancorp | Bank of Hawaii vs. Hancock Whitney 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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