Correlation Between Intesa Sanpaolo and Assicurazioni Generali

Can any of the company-specific risk be diversified away by investing in both Intesa Sanpaolo and Assicurazioni Generali 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 Intesa Sanpaolo and Assicurazioni Generali into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for Intesa Sanpaolo and Assicurazioni Generali

0.28

Correlation Coefficient

Intesa Sanpaolo  Assicurazioni Generali

Modest diversification

The 3 months correlation between Intesa and Assicurazioni is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Intesa Sanpaolo SpA and Assicurazioni Generali SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Assicurazioni Generali and Intesa Sanpaolo 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 Intesa Sanpaolo SpA are associated (or correlated) with Assicurazioni Generali. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Assicurazioni Generali has no effect on the direction of Intesa Sanpaolo i.e., Intesa Sanpaolo and Assicurazioni Generali go up and down completely randomly.

Pair Corralation between Intesa Sanpaolo and Assicurazioni Generali

Assuming the 90 days horizon Intesa Sanpaolo SpA is expected to generate 1.28 times more return on investment than Assicurazioni Generali. However, Intesa Sanpaolo is 1.28 times more volatile than Assicurazioni Generali SpA. It trades about 0.07 of its potential returns per unit of risk. Assicurazioni Generali SpA is currently generating about 0.0 per unit of risk. If you would invest  548.00  in Intesa Sanpaolo SpA on May 6, 2025 and sell it today you would earn a total of  42.00  from holding Intesa Sanpaolo SpA or generate 7.66% return on investment over 90 days.

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

Intesa Sanpaolo SpA  vs.  Assicurazioni Generali SpA

Intesa Sanpaolo SpA

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intesa Sanpaolo SpA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Intesa Sanpaolo may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Assicurazioni Generali

Risk-Adjusted Performance

Very Weak

Over the last 90 days Assicurazioni Generali SpA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong technical and fundamental indicators, Assicurazioni Generali is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intesa Sanpaolo and Assicurazioni Generali

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

The idea behind Intesa Sanpaolo SpA and Assicurazioni Generali SpA 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.