Correlation Between Intel and Bantek
Can any of the company-specific risk be diversified away by investing in both Intel and Bantek 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 Bantek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Bantek Inc, you can compare the effects of market volatilities on Intel and Bantek 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 Bantek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bantek.
Diversification Opportunities for Intel and Bantek
Excellent diversification
The 3 months correlation between Intel and Bantek is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Bantek Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bantek Inc 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 Bantek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bantek Inc has no effect on the direction of Intel i.e., Intel and Bantek go up and down completely randomly.
Pair Corralation between Intel and Bantek
Given the investment horizon of 90 days Intel is expected to generate 23.42 times less return on investment than Bantek. But when comparing it to its historical volatility, Intel is 6.85 times less risky than Bantek. It trades about 0.07 of its potential returns per unit of risk. Bantek Inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.12 in Bantek Inc on September 2, 2024 and sell it today you would earn a total of 0.11 from holding Bantek Inc or generate 91.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Bantek Inc
Performance |
| Timeline |
| Intel |
| Bantek Inc |
Intel and Bantek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Bantek
The main advantage of trading using opposite Intel and Bantek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Bantek 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 Bantek will offset losses from the drop in Bantek's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Bantek vs. Firan Technology Group | Bantek vs. 808 Renewable Energy | Bantek vs. Park Electrochemical | Bantek vs. Innovative Solutions and |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |