Correlation Between Intel and BFIT
Can any of the company-specific risk be diversified away by investing in both Intel and BFIT 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 BFIT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and BFIT, you can compare the effects of market volatilities on Intel and BFIT 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 BFIT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BFIT.
Diversification Opportunities for Intel and BFIT
Very good diversification
The 3 months correlation between Intel and BFIT is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BFIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BFIT 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 BFIT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BFIT has no effect on the direction of Intel i.e., Intel and BFIT go up and down completely randomly.
Pair Corralation between Intel and BFIT
Given the investment horizon of 90 days Intel is expected to generate 3.7 times less return on investment than BFIT. In addition to that, Intel is 2.44 times more volatile than BFIT. It trades about 0.0 of its total potential returns per unit of risk. BFIT is currently generating about 0.04 per unit of volatility. If you would invest 2,155 in BFIT on August 23, 2024 and sell it today you would earn a total of 130.00 from holding BFIT or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 32.26% |
| Values | Daily Returns |
Intel vs. BFIT
Performance |
| Timeline |
| Intel |
| BFIT |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and BFIT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BFIT
The main advantage of trading using opposite Intel and BFIT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BFIT 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 BFIT will offset losses from the drop in BFIT's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |