Correlation Between Intel and Amg River
Can any of the company-specific risk be diversified away by investing in both Intel and Amg River 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 Amg River into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Amg River Road, you can compare the effects of market volatilities on Intel and Amg River 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 Amg River. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Amg River.
Diversification Opportunities for Intel and Amg River
Very poor diversification
The 3 months correlation between Intel and Amg is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Amg River Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amg River Road 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 Amg River. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amg River Road has no effect on the direction of Intel i.e., Intel and Amg River go up and down completely randomly.
Pair Corralation between Intel and Amg River
Given the investment horizon of 90 days Intel is expected to generate 3.93 times more return on investment than Amg River. However, Intel is 3.93 times more volatile than Amg River Road. It trades about 0.13 of its potential returns per unit of risk. Amg River Road is currently generating about 0.31 per unit of risk. If you would invest 2,292 in Intel on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Intel or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Amg River Road
Performance |
| Timeline |
| Intel |
| Amg River Road |
Intel and Amg River Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Amg River
The main advantage of trading using opposite Intel and Amg River positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Amg River 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 Amg River will offset losses from the drop in Amg River's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Amg River vs. Amg Southernsun Small | Amg River vs. Cambiar International Equity | Amg River vs. Astoncrosswind Small Cap | Amg River vs. Hodges Small Cap |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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