Correlation Between Daqo New and Intel
Can any of the company-specific risk be diversified away by investing in both Daqo New 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 Daqo New and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Daqo New Energy and Intel, you can compare the effects of market volatilities on Daqo New 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 Daqo New with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Daqo New and Intel.
Diversification Opportunities for Daqo New and Intel
Very weak diversification
The 3 months correlation between Daqo and Intel is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Daqo New Energy and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Daqo New 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 Daqo New Energy 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 Daqo New i.e., Daqo New and Intel go up and down completely randomly.
Pair Corralation between Daqo New and Intel
Allowing for the 90-day total investment horizon Daqo New Energy is expected to under-perform the Intel. In addition to that, Daqo New is 1.07 times more volatile than Intel. It trades about -0.25 of its total potential returns per unit of risk. Intel is currently generating about -0.03 per unit of volatility. If you would invest 1,987 in Intel on November 5, 2024 and sell it today you would lose (44.00) from holding Intel or give up 2.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Daqo New Energy vs. Intel
Performance |
| Timeline |
| Daqo New Energy |
| Intel |
Daqo New and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Daqo New and Intel
The main advantage of trading using opposite Daqo New and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Daqo New 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.| Daqo New vs. Axcelis Technologies | Daqo New vs. Kulicke and Soffa | Daqo New vs. Ultra Clean Holdings | Daqo New vs. Cohu Inc |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |