Correlation Between Intel and USS
Can any of the company-specific risk be diversified away by investing in both Intel and USS 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 USS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and USS Co, you can compare the effects of market volatilities on Intel and USS 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 USS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and USS.
Diversification Opportunities for Intel and USS
Very good diversification
The 3 months correlation between Intel and USS is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Intel and USS Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USS Co 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 USS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USS Co has no effect on the direction of Intel i.e., Intel and USS go up and down completely randomly.
Pair Corralation between Intel and USS
Assuming the 90 days trading horizon Intel is expected to generate 2.86 times less return on investment than USS. In addition to that, Intel is 1.98 times more volatile than USS Co. It trades about 0.01 of its total potential returns per unit of risk. USS Co is currently generating about 0.03 per unit of volatility. If you would invest 735.00 in USS Co on September 2, 2024 and sell it today you would earn a total of 130.00 from holding USS Co or generate 17.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. USS Co
Performance |
| Timeline |
| Intel |
| USS Co |
Intel and USS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and USS
The main advantage of trading using opposite Intel and USS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, USS 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 USS will offset losses from the drop in USS's long position.| Intel vs. InterContinental Hotels Group | Intel vs. CITY OFFICE REIT | Intel vs. 24SEVENOFFICE GROUP AB | Intel vs. Summit Hotel Properties |
| USS vs. Superior Plus Corp | USS vs. NMI Holdings | USS vs. Origin Agritech | USS vs. SIVERS SEMICONDUCTORS AB |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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