Correlation Between Intel and Atomera
Can any of the company-specific risk be diversified away by investing in both Intel and Atomera 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 Atomera into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Atomera, you can compare the effects of market volatilities on Intel and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Atomera.
Diversification Opportunities for Intel and Atomera
Very weak diversification
The 3 months correlation between Intel and Atomera is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Intel i.e., Intel and Atomera go up and down completely randomly.
Pair Corralation between Intel and Atomera
Given the investment horizon of 90 days Intel is expected to under-perform the Atomera. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.62 times less risky than Atomera. The stock trades about -0.06 of its potential returns per unit of risk. The Atomera is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 786.00 in Atomera on August 28, 2024 and sell it today you would lose (116.00) from holding Atomera or give up 14.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Atomera
Performance |
| Timeline |
| Intel |
| Atomera |
Intel and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Atomera
The main advantage of trading using opposite Intel and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.The idea behind Intel and Atomera 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.| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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