Correlation Between Intel and Consumers Bancorp
Can any of the company-specific risk be diversified away by investing in both Intel and Consumers Bancorp 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 Consumers Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Consumers Bancorp, you can compare the effects of market volatilities on Intel and Consumers Bancorp 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 Consumers Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Consumers Bancorp.
Diversification Opportunities for Intel and Consumers Bancorp
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Consumers is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Consumers Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consumers Bancorp 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 Consumers Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consumers Bancorp has no effect on the direction of Intel i.e., Intel and Consumers Bancorp go up and down completely randomly.
Pair Corralation between Intel and Consumers Bancorp
Given the investment horizon of 90 days Intel is expected to generate 3.65 times more return on investment than Consumers Bancorp. However, Intel is 3.65 times more volatile than Consumers Bancorp. It trades about 0.17 of its potential returns per unit of risk. Consumers Bancorp is currently generating about -0.11 per unit of risk. If you would invest 2,152 in Intel on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Intel or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Intel vs. Consumers Bancorp
Performance |
| Timeline |
| Intel |
| Consumers Bancorp |
Intel and Consumers Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Consumers Bancorp
The main advantage of trading using opposite Intel and Consumers Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Consumers Bancorp 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 Consumers Bancorp will offset losses from the drop in Consumers Bancorp's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Consumers Bancorp vs. Century Next Financial | Consumers Bancorp vs. Citizens Financial Corp | Consumers Bancorp vs. Triad Business Bank | Consumers Bancorp vs. First Ottawa Bancshares |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Directory Find actively traded commodities issued by global exchanges |