Correlation Between InterContinental and QUALCOMM Incorporated
Can any of the company-specific risk be diversified away by investing in both InterContinental and QUALCOMM Incorporated 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 InterContinental and QUALCOMM Incorporated into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between InterContinental Hotels Group and QUALCOMM Incorporated, you can compare the effects of market volatilities on InterContinental and QUALCOMM Incorporated 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 InterContinental with a short position of QUALCOMM Incorporated. Check out your portfolio center. Please also check ongoing floating volatility patterns of InterContinental and QUALCOMM Incorporated.
Diversification Opportunities for InterContinental and QUALCOMM Incorporated
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between InterContinental and QUALCOMM is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding InterContinental Hotels Group and QUALCOMM Incorporated in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on QUALCOMM Incorporated and InterContinental 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 InterContinental Hotels Group are associated (or correlated) with QUALCOMM Incorporated. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QUALCOMM Incorporated has no effect on the direction of InterContinental i.e., InterContinental and QUALCOMM Incorporated go up and down completely randomly.
Pair Corralation between InterContinental and QUALCOMM Incorporated
Assuming the 90 days trading horizon InterContinental Hotels Group is expected to generate 0.64 times more return on investment than QUALCOMM Incorporated. However, InterContinental Hotels Group is 1.56 times less risky than QUALCOMM Incorporated. It trades about 0.11 of its potential returns per unit of risk. QUALCOMM Incorporated is currently generating about 0.04 per unit of risk. If you would invest 5,571 in InterContinental Hotels Group on September 3, 2024 and sell it today you would earn a total of 6,229 from holding InterContinental Hotels Group or generate 111.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
InterContinental Hotels Group vs. QUALCOMM Incorporated
Performance |
| Timeline |
| InterContinental Hotels |
| QUALCOMM Incorporated |
InterContinental and QUALCOMM Incorporated Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with InterContinental and QUALCOMM Incorporated
The main advantage of trading using opposite InterContinental and QUALCOMM Incorporated positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if InterContinental position performs unexpectedly, QUALCOMM Incorporated 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 QUALCOMM Incorporated will offset losses from the drop in QUALCOMM Incorporated's long position.| InterContinental vs. Hilton Worldwide Holdings | InterContinental vs. Hyatt Hotels | InterContinental vs. INTERCONT HOTELS | InterContinental vs. ACCOR SPADR NEW |
| QUALCOMM Incorporated vs. NVIDIA | QUALCOMM Incorporated vs. Taiwan Semiconductor Manufacturing | QUALCOMM Incorporated vs. Advanced Micro Devices | QUALCOMM Incorporated vs. Intel |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |