Correlation Between Scottish Mortgage and Intel
Can any of the company-specific risk be diversified away by investing in both Scottish Mortgage and Intel 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 Scottish Mortgage and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scottish Mortgage Investment and Intel, you can compare the effects of market volatilities on Scottish Mortgage and Intel 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 Scottish Mortgage with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scottish Mortgage and Intel.
Diversification Opportunities for Scottish Mortgage and Intel
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Scottish and Intel is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Scottish Mortgage Investment and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Scottish Mortgage 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 Scottish Mortgage Investment are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Scottish Mortgage i.e., Scottish Mortgage and Intel go up and down completely randomly.
Pair Corralation between Scottish Mortgage and Intel
Assuming the 90 days trading horizon Scottish Mortgage Investment is expected to generate 0.65 times more return on investment than Intel. However, Scottish Mortgage Investment is 1.53 times less risky than Intel. It trades about 0.22 of its potential returns per unit of risk. Intel is currently generating about -0.01 per unit of risk. If you would invest 1,158 in Scottish Mortgage Investment on November 3, 2024 and sell it today you would earn a total of 109.00 from holding Scottish Mortgage Investment or generate 9.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Scottish Mortgage Investment vs. Intel
Performance |
| Timeline |
| Scottish Mortgage |
| Intel |
Scottish Mortgage and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Scottish Mortgage and Intel
The main advantage of trading using opposite Scottish Mortgage and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scottish Mortgage position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Scottish Mortgage vs. SIVERS SEMICONDUCTORS AB | Scottish Mortgage vs. NorAm Drilling AS | Scottish Mortgage vs. Volkswagen AG | Scottish Mortgage vs. Darden Restaurants |
| Intel vs. FLOW TRADERS LTD | Intel vs. Indutrade AB | Intel vs. SALESFORCE INC CDR | Intel vs. SOCKET MOBILE NEW |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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