Correlation Between Intel and Parkson Retail
Can any of the company-specific risk be diversified away by investing in both Intel and Parkson Retail 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 Parkson Retail into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Parkson Retail Group, you can compare the effects of market volatilities on Intel and Parkson Retail 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 Parkson Retail. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Parkson Retail.
Diversification Opportunities for Intel and Parkson Retail
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Intel and Parkson is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Parkson Retail Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Parkson Retail Group 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 Parkson Retail. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Parkson Retail Group has no effect on the direction of Intel i.e., Intel and Parkson Retail go up and down completely randomly.
Pair Corralation between Intel and Parkson Retail
Assuming the 90 days trading horizon Intel is expected to generate 0.37 times more return on investment than Parkson Retail. However, Intel is 2.74 times less risky than Parkson Retail. It trades about 0.17 of its potential returns per unit of risk. Parkson Retail Group is currently generating about -0.09 per unit of risk. If you would invest 1,992 in Intel on September 1, 2024 and sell it today you would earn a total of 260.00 from holding Intel or generate 13.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Parkson Retail Group
Performance |
| Timeline |
| Intel |
| Parkson Retail Group |
Intel and Parkson Retail Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Parkson Retail
The main advantage of trading using opposite Intel and Parkson Retail positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Parkson Retail 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 Parkson Retail will offset losses from the drop in Parkson Retail's long position.| Intel vs. PARKEN Sport Entertainment | Intel vs. ARDAGH METAL PACDL 0001 | Intel vs. Columbia Sportswear | Intel vs. POWER METALS |
| Parkson Retail vs. Dillards | Parkson Retail vs. Macys Inc | Parkson Retail vs. RYOHIN UNSPADR1 | Parkson Retail vs. Superior Plus Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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