Correlation Between Intel and Global X
Can any of the company-specific risk be diversified away by investing in both Intel and Global X 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 Global X into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Global X Funds, you can compare the effects of market volatilities on Intel and Global X 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 Global X. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Global X.
Diversification Opportunities for Intel and Global X
Very poor diversification
The 3 months correlation between Intel and Global is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Global X Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global X Funds 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 Global X. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global X Funds has no effect on the direction of Intel i.e., Intel and Global X go up and down completely randomly.
Pair Corralation between Intel and Global X
Given the investment horizon of 90 days Intel is expected to generate 183.41 times more return on investment than Global X. However, Intel is 183.41 times more volatile than Global X Funds. It trades about 0.12 of its potential returns per unit of risk. Global X Funds is currently generating about 1.01 per unit of risk. If you would invest 2,252 in Intel on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Intel or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Global X Funds
Performance |
| Timeline |
| Intel |
| Global X Funds |
Intel and Global X Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Global X
The main advantage of trading using opposite Intel and Global X positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Global X 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 Global X will offset losses from the drop in Global X's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Global X vs. Global X Funds | Global X vs. US Treasury 12 | Global X vs. Tidal Trust II | Global X vs. Franklin Liberty Treasury |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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