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actually it"s Dago, and is derogatory ( in Plus Ultra!) Diego is actually a Spanish name, not used by Italians, even in Argentina, which has a large Italian population bloc. There were and are large concentrations of Italian-Americans in California and since San Diego is a major city there, that must be the connection. Explorer Christopher Columbus had a son named Diego, this is , of course when he was operating under the Spanish flag! Some prenames are common to both languages such as Maria and Fernando ( Columbus" male sponsor, King Ferdinand, it always called Fernando Rey ( Fernando, the King!) in Spanish. Fernanda is a female Italian name -one of Gina"s sisters. The connection with San Diego and also the son of Columbus seem to tie-in the odd misniomer of Dago for Italian!

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10y ago
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Q: Why is Diego nickname for Italians?
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