Correlation Between Airbus SE and Intel
Can any of the company-specific risk be diversified away by investing in both Airbus SE 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 Airbus SE and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Airbus SE and Intel, you can compare the effects of market volatilities on Airbus SE 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 Airbus SE with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Airbus SE and Intel.
Diversification Opportunities for Airbus SE and Intel
Very weak diversification
The 3 months correlation between Airbus and Intel is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Airbus SE and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Airbus SE 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 Airbus SE 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 Airbus SE i.e., Airbus SE and Intel go up and down completely randomly.
Pair Corralation between Airbus SE and Intel
Assuming the 90 days horizon Airbus SE is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Airbus SE is 2.23 times less risky than Intel. The stock trades about -0.01 of its potential returns per unit of risk. The Intel is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 2,133 in Intel on August 28, 2024 and sell it today you would earn a total of 217.00 from holding Intel or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Airbus SE vs. Intel
Performance |
| Timeline |
| Airbus SE |
| Intel |
Airbus SE and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Airbus SE and Intel
The main advantage of trading using opposite Airbus SE and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Airbus SE 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.| Airbus SE vs. SEKISUI CHEMICAL | Airbus SE vs. COLUMBIA SPORTSWEAR | Airbus SE vs. PLAYSTUDIOS A DL 0001 | Airbus SE vs. Sinopec Shanghai Petrochemical |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |