Correlation Between Intel Corp and Agrometal SAI
Can any of the company-specific risk be diversified away by investing in both Intel Corp and Agrometal SAI 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 Corp and Agrometal SAI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel Corp CEDEAR and Agrometal SAI, you can compare the effects of market volatilities on Intel Corp and Agrometal SAI 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 Corp with a short position of Agrometal SAI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel Corp and Agrometal SAI.
Diversification Opportunities for Intel Corp and Agrometal SAI
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Agrometal is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp CEDEAR and Agrometal SAI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agrometal SAI and Intel Corp 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 Corp CEDEAR are associated (or correlated) with Agrometal SAI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agrometal SAI has no effect on the direction of Intel Corp i.e., Intel Corp and Agrometal SAI go up and down completely randomly.
Pair Corralation between Intel Corp and Agrometal SAI
Assuming the 90 days trading horizon Intel Corp CEDEAR is expected to generate 0.91 times more return on investment than Agrometal SAI. However, Intel Corp CEDEAR is 1.1 times less risky than Agrometal SAI. It trades about 0.22 of its potential returns per unit of risk. Agrometal SAI is currently generating about -0.29 per unit of risk. If you would invest 472,000 in Intel Corp CEDEAR on October 24, 2024 and sell it today you would earn a total of 51,000 from holding Intel Corp CEDEAR or generate 10.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
Intel Corp CEDEAR vs. Agrometal SAI
Performance |
| Timeline |
| Intel Corp CEDEAR |
| Agrometal SAI |
Intel Corp and Agrometal SAI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel Corp and Agrometal SAI
The main advantage of trading using opposite Intel Corp and Agrometal SAI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp position performs unexpectedly, Agrometal SAI 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 Agrometal SAI will offset losses from the drop in Agrometal SAI's long position.| Intel Corp vs. Transportadora de Gas | Intel Corp vs. Harmony Gold Mining | Intel Corp vs. Compania de Transporte |
| Agrometal SAI vs. Transportadora de Gas | Agrometal SAI vs. Harmony Gold Mining | Agrometal SAI vs. United States Steel | Agrometal SAI vs. Compania de Transporte |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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