Correlation Between Intel and Aimia
Can any of the company-specific risk be diversified away by investing in both Intel and Aimia 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 Aimia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Aimia Inc, you can compare the effects of market volatilities on Intel and Aimia 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 Aimia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Aimia.
Diversification Opportunities for Intel and Aimia
Very good diversification
The 3 months correlation between Intel and Aimia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Aimia Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aimia Inc 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 Aimia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aimia Inc has no effect on the direction of Intel i.e., Intel and Aimia go up and down completely randomly.
Pair Corralation between Intel and Aimia
Given the investment horizon of 90 days Intel is expected to generate 2.38 times more return on investment than Aimia. However, Intel is 2.38 times more volatile than Aimia Inc. It trades about 0.08 of its potential returns per unit of risk. Aimia Inc is currently generating about -0.12 per unit of risk. If you would invest 2,292 in Intel on August 29, 2024 and sell it today you would earn a total of 113.00 from holding Intel or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Aimia Inc
Performance |
| Timeline |
| Intel |
| Aimia Inc |
Intel and Aimia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Aimia
The main advantage of trading using opposite Intel and Aimia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Aimia 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 Aimia will offset losses from the drop in Aimia's long position.The idea behind Intel and Aimia Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Aimia vs. Flow Capital Corp | Aimia vs. Ameritrans Capital Corp | Aimia vs. Blackhawk Growth Corp | Aimia vs. Azimut Holding SpA |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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