Correlation Between Intel and BGF Global
Can any of the company-specific risk be diversified away by investing in both Intel and BGF Global 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 BGF Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and BGF Global Allocation, you can compare the effects of market volatilities on Intel and BGF Global 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 BGF Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BGF Global.
Diversification Opportunities for Intel and BGF Global
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intel and BGF is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BGF Global Allocation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BGF Global Allocation 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 BGF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BGF Global Allocation has no effect on the direction of Intel i.e., Intel and BGF Global go up and down completely randomly.
Pair Corralation between Intel and BGF Global
Assuming the 90 days trading horizon Intel is expected to under-perform the BGF Global. In addition to that, Intel is 3.61 times more volatile than BGF Global Allocation. It trades about -0.02 of its total potential returns per unit of risk. BGF Global Allocation is currently generating about 0.17 per unit of volatility. If you would invest 4,431 in BGF Global Allocation on November 2, 2024 and sell it today you would earn a total of 116.00 from holding BGF Global Allocation or generate 2.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. BGF Global Allocation
Performance |
| Timeline |
| Intel |
| BGF Global Allocation |
Intel and BGF Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BGF Global
The main advantage of trading using opposite Intel and BGF Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BGF Global 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 BGF Global will offset losses from the drop in BGF Global's long position.| Intel vs. FIREWEED METALS P | Intel vs. Flutter Entertainment PLC | Intel vs. PARKEN Sport Entertainment | Intel vs. Nippon Light Metal |
| BGF Global vs. Groupama Entreprises N | BGF Global vs. Renaissance Europe C | BGF Global vs. Superior Plus Corp | BGF Global vs. Origin Agritech |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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