Correlation Between Intel and Biocardia
Can any of the company-specific risk be diversified away by investing in both Intel and Biocardia 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 Biocardia into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Biocardia, you can compare the effects of market volatilities on Intel and Biocardia 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 Biocardia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Biocardia.
Diversification Opportunities for Intel and Biocardia
Average diversification
The 3 months correlation between Intel and Biocardia is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Biocardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocardia 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 Biocardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocardia has no effect on the direction of Intel i.e., Intel and Biocardia go up and down completely randomly.
Pair Corralation between Intel and Biocardia
Given the investment horizon of 90 days Intel is expected to generate 1.03 times more return on investment than Biocardia. However, Intel is 1.03 times more volatile than Biocardia. It trades about 0.2 of its potential returns per unit of risk. Biocardia is currently generating about -0.03 per unit of risk. If you would invest 2,029 in Intel on November 27, 2024 and sell it today you would earn a total of 398.00 from holding Intel or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Biocardia
Performance |
| Timeline |
| Intel |
| Biocardia |
Intel and Biocardia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Biocardia
The main advantage of trading using opposite Intel and Biocardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Biocardia 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 Biocardia will offset losses from the drop in Biocardia's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Biocardia vs. Aerovate Therapeutics | Biocardia vs. Adagene | Biocardia vs. Acrivon Therapeutics, Common | Biocardia vs. Rezolute |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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