Correlation Between Fevertree Drinks and Intel
Can any of the company-specific risk be diversified away by investing in both Fevertree Drinks 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 Fevertree Drinks and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fevertree Drinks PLC and Intel, you can compare the effects of market volatilities on Fevertree Drinks 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 Fevertree Drinks with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fevertree Drinks and Intel.
Diversification Opportunities for Fevertree Drinks and Intel
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Fevertree and Intel is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Fevertree Drinks PLC and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Fevertree Drinks 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 Fevertree Drinks PLC 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 Fevertree Drinks i.e., Fevertree Drinks and Intel go up and down completely randomly.
Pair Corralation between Fevertree Drinks and Intel
Assuming the 90 days trading horizon Fevertree Drinks PLC is expected to generate 0.66 times more return on investment than Intel. However, Fevertree Drinks PLC is 1.52 times less risky than Intel. It trades about -0.06 of its potential returns per unit of risk. Intel is currently generating about -0.07 per unit of risk. If you would invest 1,223 in Fevertree Drinks PLC on September 14, 2024 and sell it today you would lose (368.00) from holding Fevertree Drinks PLC or give up 30.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fevertree Drinks PLC vs. Intel
Performance |
| Timeline |
| Fevertree Drinks PLC |
| Intel |
Fevertree Drinks and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fevertree Drinks and Intel
The main advantage of trading using opposite Fevertree Drinks and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fevertree Drinks 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.| Fevertree Drinks vs. Public Storage | Fevertree Drinks vs. GALENA MINING LTD | Fevertree Drinks vs. Pure Storage | Fevertree Drinks vs. Clean Energy Fuels |
| Intel vs. China Communications Services | Intel vs. THORNEY TECHS LTD | Intel vs. ACCSYS TECHPLC EO | Intel vs. FARO Technologies |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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