Correlation Between Intel and A SPAC
Can any of the company-specific risk be diversified away by investing in both Intel and A SPAC 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 A SPAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and A SPAC I, you can compare the effects of market volatilities on Intel and A SPAC 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 A SPAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and A SPAC.
Diversification Opportunities for Intel and A SPAC
Excellent diversification
The 3 months correlation between Intel and ASCAU is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and A SPAC I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on A SPAC I 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 A SPAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of A SPAC I has no effect on the direction of Intel i.e., Intel and A SPAC go up and down completely randomly.
Pair Corralation between Intel and A SPAC
If you would invest 2,268 in Intel on August 26, 2024 and sell it today you would earn a total of 182.00 from holding Intel or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Intel vs. A SPAC I
Performance |
| Timeline |
| Intel |
| A SPAC I |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and A SPAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and A SPAC
The main advantage of trading using opposite Intel and A SPAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, A SPAC 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 A SPAC will offset losses from the drop in A SPAC's long position.The idea behind Intel and A SPAC I 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.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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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