Correlation Between Intel and Option Care
Can any of the company-specific risk be diversified away by investing in both Intel and Option Care 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 Option Care into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Option Care Health, you can compare the effects of market volatilities on Intel and Option Care 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 Option Care. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Option Care.
Diversification Opportunities for Intel and Option Care
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Option is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Option Care Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Option Care Health 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 Option Care. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Option Care Health has no effect on the direction of Intel i.e., Intel and Option Care go up and down completely randomly.
Pair Corralation between Intel and Option Care
Assuming the 90 days trading horizon Intel is expected to generate 0.74 times more return on investment than Option Care. However, Intel is 1.35 times less risky than Option Care. It trades about 0.06 of its potential returns per unit of risk. Option Care Health is currently generating about -0.1 per unit of risk. If you would invest 2,143 in Intel on August 30, 2024 and sell it today you would earn a total of 128.00 from holding Intel or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Option Care Health
Performance |
| Timeline |
| Intel |
| Option Care Health |
Intel and Option Care Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Option Care
The main advantage of trading using opposite Intel and Option Care positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Option Care 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 Option Care will offset losses from the drop in Option Care's long position.| Intel vs. Apple Inc | Intel vs. Apple Inc | Intel vs. Superior Plus Corp | Intel vs. SIVERS SEMICONDUCTORS AB |
| Option Care vs. CarsalesCom | Option Care vs. PACIFIC ONLINE | Option Care vs. Silicon Motion Technology | Option Care vs. NISSAN CHEMICAL IND |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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