Correlation Between Intel and AULT Old
Can any of the company-specific risk be diversified away by investing in both Intel and AULT Old 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 AULT Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and AULT Old, you can compare the effects of market volatilities on Intel and AULT Old 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 AULT Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and AULT Old.
Diversification Opportunities for Intel and AULT Old
Poor diversification
The 3 months correlation between Intel and AULT is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Intel and AULT Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AULT Old 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 AULT Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AULT Old has no effect on the direction of Intel i.e., Intel and AULT Old go up and down completely randomly.
Pair Corralation between Intel and AULT Old
If you would invest 2,020 in Intel on October 24, 2024 and sell it today you would earn a total of 129.00 from holding Intel or generate 6.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 5.56% |
| Values | Daily Returns |
Intel vs. AULT Old
Performance |
| Timeline |
| Intel |
| AULT Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and AULT Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and AULT Old
The main advantage of trading using opposite Intel and AULT Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, AULT Old 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 AULT Old will offset losses from the drop in AULT Old's long position.The idea behind Intel and AULT Old 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.| AULT Old vs. Air Lease | AULT Old vs. Japan Tobacco ADR | AULT Old vs. Mesa Air Group | AULT Old vs. Delta Air Lines |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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