Correlation Between Intel and Altair International
Can any of the company-specific risk be diversified away by investing in both Intel and Altair International 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 Altair International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Altair International Corp, you can compare the effects of market volatilities on Intel and Altair International 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 Altair International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Altair International.
Diversification Opportunities for Intel and Altair International
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Altair is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Altair International Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Altair International Corp 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 Altair International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Altair International Corp has no effect on the direction of Intel i.e., Intel and Altair International go up and down completely randomly.
Pair Corralation between Intel and Altair International
Given the investment horizon of 90 days Intel is expected to under-perform the Altair International. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 4.38 times less risky than Altair International. The stock trades about -0.06 of its potential returns per unit of risk. The Altair International Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6.90 in Altair International Corp on September 3, 2024 and sell it today you would lose (2.40) from holding Altair International Corp or give up 34.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Altair International Corp
Performance |
| Timeline |
| Intel |
| Altair International Corp |
Intel and Altair International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Altair International
The main advantage of trading using opposite Intel and Altair International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Altair International 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 Altair International will offset losses from the drop in Altair International's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Altair International vs. Qubec Nickel Corp | Altair International vs. IGO Limited | Altair International vs. Avarone Metals | Altair International vs. Adriatic Metals PLC |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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