Correlation Between INTEL CDR and Spectral Med
Can any of the company-specific risk be diversified away by investing in both INTEL CDR and Spectral Med 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 CDR and Spectral Med into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTEL CDR and Spectral Med, you can compare the effects of market volatilities on INTEL CDR and Spectral Med 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 CDR with a short position of Spectral Med. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL CDR and Spectral Med.
Diversification Opportunities for INTEL CDR and Spectral Med
-0.84 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between INTEL and Spectral is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding INTEL CDR and Spectral Med in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Spectral Med and INTEL CDR 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 CDR are associated (or correlated) with Spectral Med. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Spectral Med has no effect on the direction of INTEL CDR i.e., INTEL CDR and Spectral Med go up and down completely randomly.
Pair Corralation between INTEL CDR and Spectral Med
Assuming the 90 days trading horizon INTEL CDR is expected to under-perform the Spectral Med. In addition to that, INTEL CDR is 1.13 times more volatile than Spectral Med. It trades about -0.04 of its total potential returns per unit of risk. Spectral Med is currently generating about 0.05 per unit of volatility. If you would invest 49.00 in Spectral Med on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Spectral Med or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INTEL CDR vs. Spectral Med
Performance |
| Timeline |
| INTEL CDR |
| Spectral Med |
INTEL CDR and Spectral Med Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INTEL CDR and Spectral Med
The main advantage of trading using opposite INTEL CDR and Spectral Med positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL CDR position performs unexpectedly, Spectral Med 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 Spectral Med will offset losses from the drop in Spectral Med's long position.| INTEL CDR vs. Constellation Software | INTEL CDR vs. Stampede Drilling | INTEL CDR vs. Computer Modelling Group | INTEL CDR vs. MTY Food Group |
| Spectral Med vs. Helix BioPharma Corp | Spectral Med vs. Aptose Biosciences | Spectral Med vs. Microbix Biosystems | Spectral Med vs. Resverlogix 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 CEOs Directory module to screen CEOs from public companies around the world.
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