Correlation Between Intel and Intel
Can any of the company-specific risk be diversified away by investing in both Intel 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 Intel and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Intel, you can compare the effects of market volatilities on Intel 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 Intel with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Intel.
Diversification Opportunities for Intel and Intel
Almost no diversification
The 3 months correlation between Intel and Intel is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Intel 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 Intel 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 Intel i.e., Intel and Intel go up and down completely randomly.
Pair Corralation between Intel and Intel
Assuming the 90 days horizon Intel is expected to generate 2.67 times less return on investment than Intel. But when comparing it to its historical volatility, Intel is 1.07 times less risky than Intel. It trades about 0.08 of its potential returns per unit of risk. Intel is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,999 in Intel on September 1, 2024 and sell it today you would earn a total of 292.00 from holding Intel or generate 14.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intel vs. Intel
Performance |
| Timeline |
| Intel |
| Intel |
Intel and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Intel
The main advantage of trading using opposite Intel and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel 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.The idea behind Intel and Intel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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