Correlation Between Intel and Amex Exploration
Can any of the company-specific risk be diversified away by investing in both Intel and Amex Exploration 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 Amex Exploration into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Amex Exploration, you can compare the effects of market volatilities on Intel and Amex Exploration 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 Amex Exploration. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Amex Exploration.
Diversification Opportunities for Intel and Amex Exploration
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Amex is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Amex Exploration in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amex Exploration 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 Amex Exploration. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amex Exploration has no effect on the direction of Intel i.e., Intel and Amex Exploration go up and down completely randomly.
Pair Corralation between Intel and Amex Exploration
Given the investment horizon of 90 days Intel is expected to generate 0.73 times more return on investment than Amex Exploration. However, Intel is 1.37 times less risky than Amex Exploration. It trades about 0.01 of its potential returns per unit of risk. Amex Exploration is currently generating about 0.0 per unit of risk. If you would invest 2,725 in Intel on September 4, 2024 and sell it today you would lose (332.00) from holding Intel or give up 12.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Amex Exploration
Performance |
| Timeline |
| Intel |
| Amex Exploration |
Intel and Amex Exploration Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Amex Exploration
The main advantage of trading using opposite Intel and Amex Exploration positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Amex Exploration 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 Amex Exploration will offset losses from the drop in Amex Exploration's long position.| Intel vs. NXP Semiconductors NV | Intel vs. Analog Devices | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor |
| Amex Exploration vs. Minnova Corp | Amex Exploration vs. Argo Gold | Amex Exploration vs. Advance Gold Corp | Amex Exploration vs. Blue Star Gold |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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