Correlation Between Intel and Catcha Investment
Can any of the company-specific risk be diversified away by investing in both Intel and Catcha Investment 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 Catcha Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Catcha Investment Corp, you can compare the effects of market volatilities on Intel and Catcha Investment 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 Catcha Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Catcha Investment.
Diversification Opportunities for Intel and Catcha Investment
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Catcha is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Catcha Investment Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catcha Investment 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 Catcha Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catcha Investment Corp has no effect on the direction of Intel i.e., Intel and Catcha Investment go up and down completely randomly.
Pair Corralation between Intel and Catcha Investment
Given the investment horizon of 90 days Intel is expected to generate 0.32 times more return on investment than Catcha Investment. However, Intel is 3.16 times less risky than Catcha Investment. It trades about -0.02 of its potential returns per unit of risk. Catcha Investment Corp is currently generating about -0.03 per unit of risk. If you would invest 2,994 in Intel on August 27, 2024 and sell it today you would lose (507.00) from holding Intel or give up 16.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 23.02% |
| Values | Daily Returns |
Intel vs. Catcha Investment Corp
Performance |
| Timeline |
| Intel |
| Catcha Investment Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Catcha Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Catcha Investment
The main advantage of trading using opposite Intel and Catcha Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Catcha Investment 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 Catcha Investment will offset losses from the drop in Catcha Investment's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Catcha Investment vs. DP Cap Acquisition | Catcha Investment vs. A SPAC II | Catcha Investment vs. Athena Technology Acquisition |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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