Correlation Between Globex Mining and INTEL CDR
Can any of the company-specific risk be diversified away by investing in both Globex Mining and INTEL CDR 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 Globex Mining and INTEL CDR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globex Mining Enterprises and INTEL CDR, you can compare the effects of market volatilities on Globex Mining and INTEL CDR 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 Globex Mining with a short position of INTEL CDR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globex Mining and INTEL CDR.
Diversification Opportunities for Globex Mining and INTEL CDR
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Globex and INTEL is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Globex Mining Enterprises and INTEL CDR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INTEL CDR and Globex Mining 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 Globex Mining Enterprises are associated (or correlated) with INTEL CDR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INTEL CDR has no effect on the direction of Globex Mining i.e., Globex Mining and INTEL CDR go up and down completely randomly.
Pair Corralation between Globex Mining and INTEL CDR
Assuming the 90 days trading horizon Globex Mining Enterprises is expected to generate 0.87 times more return on investment than INTEL CDR. However, Globex Mining Enterprises is 1.15 times less risky than INTEL CDR. It trades about 0.04 of its potential returns per unit of risk. INTEL CDR is currently generating about -0.02 per unit of risk. If you would invest 83.00 in Globex Mining Enterprises on October 7, 2024 and sell it today you would earn a total of 35.00 from holding Globex Mining Enterprises or generate 42.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 89.72% |
| Values | Daily Returns |
Globex Mining Enterprises vs. INTEL CDR
Performance |
| Timeline |
| Globex Mining Enterprises |
| INTEL CDR |
Globex Mining and INTEL CDR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globex Mining and INTEL CDR
The main advantage of trading using opposite Globex Mining and INTEL CDR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globex Mining position performs unexpectedly, INTEL CDR 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 CDR will offset losses from the drop in INTEL CDR's long position.| Globex Mining vs. Chibougamau Independent Mines | Globex Mining vs. Entree Resources | Globex Mining vs. Solitario Exploration Royalty | Globex Mining vs. Forsys Metals Corp |
| INTEL CDR vs. SPoT Coffee | INTEL CDR vs. Maple Peak Investments | INTEL CDR vs. Partners Value Investments | INTEL CDR vs. Economic Investment Trust |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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