Correlation Between Intel and Agricultural Bank
Can any of the company-specific risk be diversified away by investing in both Intel and Agricultural Bank 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 Agricultural Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Agricultural Bank of, you can compare the effects of market volatilities on Intel and Agricultural Bank 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 Agricultural Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Agricultural Bank.
Diversification Opportunities for Intel and Agricultural Bank
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Agricultural is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Agricultural Bank of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agricultural Bank 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 Agricultural Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agricultural Bank has no effect on the direction of Intel i.e., Intel and Agricultural Bank go up and down completely randomly.
Pair Corralation between Intel and Agricultural Bank
Given the investment horizon of 90 days Intel is expected to under-perform the Agricultural Bank. In addition to that, Intel is 1.77 times more volatile than Agricultural Bank of. It trades about -0.03 of its total potential returns per unit of risk. Agricultural Bank of is currently generating about 0.07 per unit of volatility. If you would invest 1,060 in Agricultural Bank of on September 2, 2024 and sell it today you would earn a total of 195.00 from holding Agricultural Bank of or generate 18.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Agricultural Bank of
Performance |
| Timeline |
| Intel |
| Agricultural Bank |
Intel and Agricultural Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Agricultural Bank
The main advantage of trading using opposite Intel and Agricultural Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Agricultural Bank 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 Agricultural Bank will offset losses from the drop in Agricultural Bank's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Agricultural Bank vs. Industrial Commercial Bank | Agricultural Bank vs. China Construction Bank | Agricultural Bank vs. Bank of America | Agricultural Bank vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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