Correlation Between Intel and Ams AG
Can any of the company-specific risk be diversified away by investing in both Intel and Ams AG 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 Ams AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and ams AG, you can compare the effects of market volatilities on Intel and Ams AG 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 Ams AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Ams AG.
Diversification Opportunities for Intel and Ams AG
Good diversification
The 3 months correlation between Intel and Ams is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ams AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ams AG 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 Ams AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ams AG has no effect on the direction of Intel i.e., Intel and Ams AG go up and down completely randomly.
Pair Corralation between Intel and Ams AG
Given the investment horizon of 90 days Intel is expected to under-perform the Ams AG. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 49.09 times less risky than Ams AG. The stock trades about -0.03 of its potential returns per unit of risk. The ams AG is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 784.00 in ams AG on August 25, 2024 and sell it today you would lose (434.00) from holding ams AG or give up 55.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.21% |
| Values | Daily Returns |
Intel vs. ams AG
Performance |
| Timeline |
| Intel |
| ams AG |
Intel and Ams AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Ams AG
The main advantage of trading using opposite Intel and Ams AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Ams AG 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 Ams AG will offset losses from the drop in Ams AG's long position.The idea behind Intel and ams AG 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.| Ams AG vs. NVIDIA | Ams AG vs. Intel | Ams AG vs. Taiwan Semiconductor Manufacturing | Ams AG vs. Marvell Technology Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |