Correlation Between Brent Crude and INTEL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Brent Crude Oil and INTEL P 315, you can compare the effects of market volatilities on Brent Crude 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 Brent Crude with a short position of INTEL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brent Crude and INTEL.
Diversification Opportunities for Brent Crude and INTEL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Brent and INTEL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Brent Crude Oil and INTEL P 315 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL P 315 and Brent Crude 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 Brent Crude Oil 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 P 315 has no effect on the direction of Brent Crude i.e., Brent Crude and INTEL go up and down completely randomly.
Pair Corralation between Brent Crude and INTEL
Assuming the 90 days horizon Brent Crude Oil is expected to generate 2.98 times more return on investment than INTEL. However, Brent Crude is 2.98 times more volatile than INTEL P 315. It trades about 0.39 of its potential returns per unit of risk. INTEL P 315 is currently generating about 0.02 per unit of risk. If you would invest 7,256 in Brent Crude Oil on October 21, 2024 and sell it today you would earn a total of 697.00 from holding Brent Crude Oil or generate 9.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brent Crude Oil vs. INTEL P 315
Performance |
| Timeline |
| Brent Crude Oil |
| INTEL P 315 |
Brent Crude and INTEL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brent Crude and INTEL
The main advantage of trading using opposite Brent Crude and INTEL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brent Crude 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.| Brent Crude vs. Oat Futures | Brent Crude vs. Class III Milk | Brent Crude vs. Soybean Meal Futures | Brent Crude vs. Micro Gold Futures |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |