Correlation Between Check Point and Intel
Can any of the company-specific risk be diversified away by investing in both Check Point 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 Check Point and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Intel, you can compare the effects of market volatilities on Check Point 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 Check Point with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Intel.
Diversification Opportunities for Check Point and Intel
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Check and Intel is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Check Point 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 Check Point Software 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 Check Point i.e., Check Point and Intel go up and down completely randomly.
Pair Corralation between Check Point and Intel
Assuming the 90 days trading horizon Check Point Software is expected to generate 0.52 times more return on investment than Intel. However, Check Point Software is 1.93 times less risky than Intel. It trades about 0.1 of its potential returns per unit of risk. Intel is currently generating about -0.02 per unit of risk. If you would invest 13,790 in Check Point Software on September 2, 2024 and sell it today you would earn a total of 3,435 from holding Check Point Software or generate 24.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Check Point Software vs. Intel
Performance |
| Timeline |
| Check Point Software |
| Intel |
Check Point and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Intel
The main advantage of trading using opposite Check Point and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point 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.| Check Point vs. URBAN OUTFITTERS | Check Point vs. SLR Investment Corp | Check Point vs. ECHO INVESTMENT ZY | Check Point vs. PennyMac Mortgage Investment |
| Intel vs. InterContinental Hotels Group | Intel vs. CITY OFFICE REIT | Intel vs. 24SEVENOFFICE GROUP AB | Intel vs. Summit Hotel Properties |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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