Correlation Between Intel and BICO Group
Can any of the company-specific risk be diversified away by investing in both Intel and BICO Group 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 BICO Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and BICO Group AB, you can compare the effects of market volatilities on Intel and BICO Group 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 BICO Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BICO Group.
Diversification Opportunities for Intel and BICO Group
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and BICO is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BICO Group AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BICO Group AB 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 BICO Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BICO Group AB has no effect on the direction of Intel i.e., Intel and BICO Group go up and down completely randomly.
Pair Corralation between Intel and BICO Group
Given the investment horizon of 90 days Intel is expected to under-perform the BICO Group. In addition to that, Intel is 1.46 times more volatile than BICO Group AB. It trades about -0.03 of its total potential returns per unit of risk. BICO Group AB is currently generating about -0.02 per unit of volatility. If you would invest 98.00 in BICO Group AB on September 1, 2024 and sell it today you would lose (10.00) from holding BICO Group AB or give up 10.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Intel vs. BICO Group AB
Performance |
| Timeline |
| Intel |
| BICO Group AB |
Intel and BICO Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BICO Group
The main advantage of trading using opposite Intel and BICO Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BICO Group 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 BICO Group will offset losses from the drop in BICO Group's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| BICO Group vs. Anteris Technologies | BICO Group vs. Brain Scientific | BICO Group vs. Aurora Spine | BICO Group vs. Tenon Medical |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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