Correlation Between INTEL CDR and Savaria
Can any of the company-specific risk be diversified away by investing in both INTEL CDR and Savaria 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 Savaria into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between INTEL CDR and Savaria, you can compare the effects of market volatilities on INTEL CDR and Savaria 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 Savaria. Check out your portfolio center. Please also check ongoing floating volatility patterns of INTEL CDR and Savaria.
Diversification Opportunities for INTEL CDR and Savaria
Poor diversification
The 3 months correlation between INTEL and Savaria is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding INTEL CDR and Savaria in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Savaria 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 Savaria. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Savaria has no effect on the direction of INTEL CDR i.e., INTEL CDR and Savaria go up and down completely randomly.
Pair Corralation between INTEL CDR and Savaria
Assuming the 90 days trading horizon INTEL CDR is expected to generate 1.33 times more return on investment than Savaria. However, INTEL CDR is 1.33 times more volatile than Savaria. It trades about 0.16 of its potential returns per unit of risk. Savaria is currently generating about -0.08 per unit of risk. If you would invest 1,269 in INTEL CDR on September 1, 2024 and sell it today you would earn a total of 145.00 from holding INTEL CDR or generate 11.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
INTEL CDR vs. Savaria
Performance |
Timeline |
INTEL CDR |
Savaria |
INTEL CDR and Savaria Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INTEL CDR and Savaria
The main advantage of trading using opposite INTEL CDR and Savaria positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL CDR position performs unexpectedly, Savaria 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 Savaria will offset losses from the drop in Savaria's long position.INTEL CDR vs. Bausch Health Companies | INTEL CDR vs. American Hotel Income | INTEL CDR vs. WELL Health Technologies | INTEL CDR vs. DRI Healthcare Trust |
Savaria vs. TFI International | Savaria vs. goeasy | Savaria vs. Enghouse Systems | Savaria vs. Exchange Income |
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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