Correlation Between Intel and CEVA
Can any of the company-specific risk be diversified away by investing in both Intel and CEVA 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 CEVA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and CEVA Inc, you can compare the effects of market volatilities on Intel and CEVA 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 CEVA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and CEVA.
Diversification Opportunities for Intel and CEVA
Very weak diversification
The 3 months correlation between Intel and CEVA is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and CEVA Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEVA Inc 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 CEVA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEVA Inc has no effect on the direction of Intel i.e., Intel and CEVA go up and down completely randomly.
Pair Corralation between Intel and CEVA
Assuming the 90 days horizon Intel is expected to under-perform the CEVA. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.08 times less risky than CEVA. The stock trades about 0.0 of its potential returns per unit of risk. The CEVA Inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,474 in CEVA Inc on September 13, 2024 and sell it today you would earn a total of 486.00 from holding CEVA Inc or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Intel vs. CEVA Inc
Performance |
| Timeline |
| Intel |
| CEVA Inc |
Intel and CEVA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and CEVA
The main advantage of trading using opposite Intel and CEVA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, CEVA 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 CEVA will offset losses from the drop in CEVA's long position.| Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Broadcom | Intel vs. Superior Plus Corp | Intel vs. SIVERS SEMICONDUCTORS AB |
| CEVA vs. Perdoceo Education | CEVA vs. Ares Management Corp | CEVA vs. OFFICE DEPOT | CEVA vs. SIEM OFFSHORE NEW |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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