Correlation Between Intel and Breeze Holdings
Can any of the company-specific risk be diversified away by investing in both Intel and Breeze Holdings 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 Breeze Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Breeze Holdings Acquisition, you can compare the effects of market volatilities on Intel and Breeze Holdings 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 Breeze Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Breeze Holdings.
Diversification Opportunities for Intel and Breeze Holdings
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Breeze is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Breeze Holdings Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Breeze Holdings Acqu 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 Breeze Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Breeze Holdings Acqu has no effect on the direction of Intel i.e., Intel and Breeze Holdings go up and down completely randomly.
Pair Corralation between Intel and Breeze Holdings
Given the investment horizon of 90 days Intel is expected to generate 195.88 times less return on investment than Breeze Holdings. But when comparing it to its historical volatility, Intel is 6.92 times less risky than Breeze Holdings. It trades about 0.0 of its potential returns per unit of risk. Breeze Holdings Acquisition is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 8.69 in Breeze Holdings Acquisition on August 29, 2024 and sell it today you would earn a total of 13.31 from holding Breeze Holdings Acquisition or generate 153.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 29.84% |
| Values | Daily Returns |
Intel vs. Breeze Holdings Acquisition
Performance |
| Timeline |
| Intel |
| Breeze Holdings Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Breeze Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Breeze Holdings
The main advantage of trading using opposite Intel and Breeze Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Breeze Holdings 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 Breeze Holdings will offset losses from the drop in Breeze Holdings' long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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