Correlation Between Charoen Pokphand and Intel
Can any of the company-specific risk be diversified away by investing in both Charoen Pokphand 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 Charoen Pokphand and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Charoen Pokphand Foods and Intel, you can compare the effects of market volatilities on Charoen Pokphand 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 Charoen Pokphand with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Charoen Pokphand and Intel.
Diversification Opportunities for Charoen Pokphand and Intel
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Charoen and Intel is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Charoen Pokphand Foods and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Charoen Pokphand 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 Charoen Pokphand Foods 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 Charoen Pokphand i.e., Charoen Pokphand and Intel go up and down completely randomly.
Pair Corralation between Charoen Pokphand and Intel
Assuming the 90 days trading horizon Charoen Pokphand is expected to generate 1.9 times less return on investment than Intel. In addition to that, Charoen Pokphand is 1.24 times more volatile than Intel. It trades about 0.08 of its total potential returns per unit of risk. Intel is currently generating about 0.19 per unit of volatility. If you would invest 1,912 in Intel on December 1, 2024 and sell it today you would earn a total of 310.00 from holding Intel or generate 16.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Charoen Pokphand Foods vs. Intel
Performance |
| Timeline |
| Charoen Pokphand Foods |
| Intel |
Charoen Pokphand and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Charoen Pokphand and Intel
The main advantage of trading using opposite Charoen Pokphand and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Charoen Pokphand 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.| Charoen Pokphand vs. Charoen Pokphand Foods | Charoen Pokphand vs. KRUNG THAI FGN | Charoen Pokphand vs. PT Gudang Garam | Charoen Pokphand vs. TMBThanachart Bank Public |
| Intel vs. Major Drilling Group | Intel vs. AWILCO DRILLING PLC | Intel vs. Austevoll Seafood ASA | Intel vs. GOME Retail Holdings |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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