Correlation Between Intel and Celularity
Can any of the company-specific risk be diversified away by investing in both Intel and Celularity 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 Celularity into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Celularity, you can compare the effects of market volatilities on Intel and Celularity 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 Celularity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Celularity.
Diversification Opportunities for Intel and Celularity
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Intel and Celularity is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Celularity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Celularity 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 Celularity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Celularity has no effect on the direction of Intel i.e., Intel and Celularity go up and down completely randomly.
Pair Corralation between Intel and Celularity
Given the investment horizon of 90 days Intel is expected to generate 4.45 times less return on investment than Celularity. But when comparing it to its historical volatility, Intel is 6.14 times less risky than Celularity. It trades about 0.17 of its potential returns per unit of risk. Celularity is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 1.79 in Celularity on September 1, 2024 and sell it today you would earn a total of 0.20 from holding Celularity or generate 11.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Intel vs. Celularity
Performance |
| Timeline |
| Intel |
| Celularity |
Intel and Celularity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Celularity
The main advantage of trading using opposite Intel and Celularity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Celularity 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 Celularity will offset losses from the drop in Celularity's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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