Correlation Between Intel and Calian Group
Can any of the company-specific risk be diversified away by investing in both Intel and Calian Group 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 Calian Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Calian Group, you can compare the effects of market volatilities on Intel and Calian Group 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 Calian Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Calian Group.
Diversification Opportunities for Intel and Calian Group
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Calian is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Calian Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calian Group 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 Calian Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calian Group has no effect on the direction of Intel i.e., Intel and Calian Group go up and down completely randomly.
Pair Corralation between Intel and Calian Group
Given the investment horizon of 90 days Intel is expected to generate 1.29 times more return on investment than Calian Group. However, Intel is 1.29 times more volatile than Calian Group. It trades about 0.02 of its potential returns per unit of risk. Calian Group is currently generating about -0.12 per unit of risk. If you would invest 2,346 in Intel on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Intel or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.73% |
| Values | Daily Returns |
Intel vs. Calian Group
Performance |
| Timeline |
| Intel |
| Calian Group |
Intel and Calian Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Calian Group
The main advantage of trading using opposite Intel and Calian Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Calian Group 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 Calian Group will offset losses from the drop in Calian Group's long position.The idea behind Intel and Calian Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Calian Group vs. Deere Company | Calian Group vs. Columbus McKinnon | Calian Group vs. Hyster Yale Materials Handling | Calian Group vs. Manitowoc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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