Correlation Between Intel and Bravo Mining
Can any of the company-specific risk be diversified away by investing in both Intel and Bravo Mining 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 Bravo Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Bravo Mining Corp, you can compare the effects of market volatilities on Intel and Bravo Mining 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 Bravo Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Bravo Mining.
Diversification Opportunities for Intel and Bravo Mining
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Bravo is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Bravo Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bravo Mining Corp 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 Bravo Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bravo Mining Corp has no effect on the direction of Intel i.e., Intel and Bravo Mining go up and down completely randomly.
Pair Corralation between Intel and Bravo Mining
Given the investment horizon of 90 days Intel is expected to generate 1.21 times more return on investment than Bravo Mining. However, Intel is 1.21 times more volatile than Bravo Mining Corp. It trades about -0.03 of its potential returns per unit of risk. Bravo Mining Corp is currently generating about -0.16 per unit of risk. If you would invest 3,059 in Intel on September 3, 2024 and sell it today you would lose (666.00) from holding Intel or give up 21.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Bravo Mining Corp
Performance |
| Timeline |
| Intel |
| Bravo Mining Corp |
Intel and Bravo Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Bravo Mining
The main advantage of trading using opposite Intel and Bravo Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Bravo Mining 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 Bravo Mining will offset losses from the drop in Bravo Mining's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Bravo Mining vs. Alien Metals | Bravo Mining vs. Capella Minerals Limited | Bravo Mining vs. Honey Badger Silver | Bravo Mining vs. Auxico Resources Canada |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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