Correlation Between Intel and Big Lots
Can any of the company-specific risk be diversified away by investing in both Intel and Big Lots 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 Big Lots into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Big Lots, you can compare the effects of market volatilities on Intel and Big Lots 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 Big Lots. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Big Lots.
Diversification Opportunities for Intel and Big Lots
Pay attention - limited upside
The 3 months correlation between Intel and Big is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Big Lots in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Lots 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 Big Lots. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Lots has no effect on the direction of Intel i.e., Intel and Big Lots go up and down completely randomly.
Pair Corralation between Intel and Big Lots
Given the investment horizon of 90 days Intel is expected to generate 0.36 times more return on investment than Big Lots. However, Intel is 2.81 times less risky than Big Lots. It trades about 0.0 of its potential returns per unit of risk. Big Lots is currently generating about -0.1 per unit of risk. If you would invest 2,826 in Intel on August 31, 2024 and sell it today you would lose (421.00) from holding Intel or give up 14.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 89.75% |
| Values | Daily Returns |
Intel vs. Big Lots
Performance |
| Timeline |
| Intel |
| Big Lots |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Big Lots Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Big Lots
The main advantage of trading using opposite Intel and Big Lots positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Big Lots 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 Big Lots will offset losses from the drop in Big Lots' long position.The idea behind Intel and Big Lots 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.| Big Lots vs. BJs Wholesale Club | Big Lots vs. Dollar General | Big Lots vs. Costco Wholesale Corp | Big Lots vs. Walmart |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |