Correlation Between Intel Corp and Capex SA
Can any of the company-specific risk be diversified away by investing in both Intel Corp and Capex SA 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 Capex SA 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 Capex SA, you can compare the effects of market volatilities on Intel Corp and Capex SA 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 Capex SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel Corp and Capex SA.
Diversification Opportunities for Intel Corp and Capex SA
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intel and Capex is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp CEDEAR and Capex SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capex SA 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 Capex SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capex SA has no effect on the direction of Intel Corp i.e., Intel Corp and Capex SA go up and down completely randomly.
Pair Corralation between Intel Corp and Capex SA
Assuming the 90 days trading horizon Intel Corp CEDEAR is expected to under-perform the Capex SA. In addition to that, Intel Corp is 1.28 times more volatile than Capex SA. It trades about -0.04 of its total potential returns per unit of risk. Capex SA is currently generating about 0.11 per unit of volatility. If you would invest 570,600 in Capex SA on September 3, 2024 and sell it today you would earn a total of 309,400 from holding Capex SA or generate 54.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel Corp CEDEAR vs. Capex SA
Performance |
| Timeline |
| Intel Corp CEDEAR |
| Capex SA |
Intel Corp and Capex SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel Corp and Capex SA
The main advantage of trading using opposite Intel Corp and Capex SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp position performs unexpectedly, Capex SA 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 Capex SA will offset losses from the drop in Capex SA's long position.| Intel Corp vs. Transportadora de Gas | Intel Corp vs. Compania de Transporte | Intel Corp vs. Agrometal SAI | Intel Corp vs. Harmony Gold Mining |
| Capex SA vs. Agrometal SAI | Capex SA vs. Transportadora de Gas | Capex SA vs. Compania de Transporte | Capex SA vs. United States Steel |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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