Correlation Between Intel and KINGBOARD CHEMICAL
Can any of the company-specific risk be diversified away by investing in both Intel and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and KINGBOARD CHEMICAL, you can compare the effects of market volatilities on Intel and KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and KINGBOARD CHEMICAL.
Diversification Opportunities for Intel and KINGBOARD CHEMICAL
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intel and KINGBOARD is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intel and KINGBOARD CHEMICAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KINGBOARD CHEMICAL has no effect on the direction of Intel i.e., Intel and KINGBOARD CHEMICAL go up and down completely randomly.
Pair Corralation between Intel and KINGBOARD CHEMICAL
Assuming the 90 days trading horizon Intel is expected to under-perform the KINGBOARD CHEMICAL. In addition to that, Intel is 2.07 times more volatile than KINGBOARD CHEMICAL. It trades about -0.25 of its total potential returns per unit of risk. KINGBOARD CHEMICAL is currently generating about 0.04 per unit of volatility. If you would invest 196.00 in KINGBOARD CHEMICAL on September 15, 2024 and sell it today you would earn a total of 2.00 from holding KINGBOARD CHEMICAL or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intel vs. KINGBOARD CHEMICAL
Performance |
| Timeline |
| Intel |
| KINGBOARD CHEMICAL |
Intel and KINGBOARD CHEMICAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and KINGBOARD CHEMICAL
The main advantage of trading using opposite Intel and KINGBOARD CHEMICAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, KINGBOARD CHEMICAL 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 KINGBOARD CHEMICAL will offset losses from the drop in KINGBOARD CHEMICAL's long position.| Intel vs. KINGBOARD CHEMICAL | Intel vs. Data3 Limited | Intel vs. X FAB Silicon Foundries | Intel vs. National Storage Affiliates |
| KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc | KINGBOARD CHEMICAL vs. Apple Inc |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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