Correlation Between Hays Plc and Intel
Can any of the company-specific risk be diversified away by investing in both Hays Plc 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 Hays Plc and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hays plc and Intel, you can compare the effects of market volatilities on Hays Plc 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 Hays Plc with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hays Plc and Intel.
Diversification Opportunities for Hays Plc and Intel
Excellent diversification
The 3 months correlation between Hays and Intel is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Hays plc and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Hays Plc 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 Hays 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 Hays Plc i.e., Hays Plc and Intel go up and down completely randomly.
Pair Corralation between Hays Plc and Intel
Assuming the 90 days horizon Hays plc is expected to under-perform the Intel. In addition to that, Hays Plc is 1.16 times more volatile than Intel. It trades about -0.01 of its total potential returns per unit of risk. Intel is currently generating about 0.08 per unit of volatility. If you would invest 2,157 in Intel on September 2, 2024 and sell it today you would earn a total of 95.00 from holding Intel or generate 4.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hays plc vs. Intel
Performance |
| Timeline |
| Hays plc |
| Intel |
Hays Plc and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hays Plc and Intel
The main advantage of trading using opposite Hays Plc and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hays Plc 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.| Hays Plc vs. National Bank Holdings | Hays Plc vs. SEI INVESTMENTS | Hays Plc vs. EAT WELL INVESTMENT | Hays Plc vs. SLR Investment Corp |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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