Correlation Between Eni SpA and Iteos Therapeutics

Can any of the company-specific risk be diversified away by investing in both Eni SpA and Iteos Therapeutics 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 Eni SpA and Iteos Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eni SpA and Iteos Therapeutics, you can compare the effects of market volatilities on Eni SpA and Iteos Therapeutics 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 Eni SpA with a short position of Iteos Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eni SpA and Iteos Therapeutics.

Diversification Opportunities for Eni SpA and Iteos Therapeutics

0.41

Correlation Coefficient

Eni SpA  Iteos Therapeutics

Very weak diversification

The 3 months correlation between Eni and Iteos is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Eni SpA and Iteos Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iteos Therapeutics and Eni SpA 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 Eni SpA are associated (or correlated) with Iteos Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iteos Therapeutics has no effect on the direction of Eni SpA i.e., Eni SpA and Iteos Therapeutics go up and down completely randomly.

Pair Corralation between Eni SpA and Iteos Therapeutics

Assuming the 90 days horizon Eni SpA is expected to generate 1.18 times more return on investment than Iteos Therapeutics. However, Eni SpA is 1.18 times more volatile than Iteos Therapeutics. It trades about 0.12 of its potential returns per unit of risk. Iteos Therapeutics is currently generating about 0.12 per unit of risk. If you would invest  1,559  in Eni SpA on May 22, 2025 and sell it today you would earn a total of  305.00  from holding Eni SpA or generate 19.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eni SpA  vs.  Iteos Therapeutics

Eni SpA

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Eni SpA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Eni SpA reported solid returns over the last few months and may actually be approaching a breakup point.

Iteos Therapeutics

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Iteos Therapeutics are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Iteos Therapeutics unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Eni SpA and Iteos Therapeutics

The main advantage of trading using opposite Eni SpA and Iteos Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eni SpA position performs unexpectedly, Iteos Therapeutics 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 Iteos Therapeutics will offset losses from the drop in Iteos Therapeutics' long position.

The idea behind Eni SpA and Iteos Therapeutics 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.

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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.