Correlation Between Intel and IShares VII
Can any of the company-specific risk be diversified away by investing in both Intel and IShares VII 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 IShares VII into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and iShares VII Public, you can compare the effects of market volatilities on Intel and IShares VII 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 IShares VII. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IShares VII.
Diversification Opportunities for Intel and IShares VII
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and IShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intel and iShares VII Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares VII Public 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 IShares VII. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares VII Public has no effect on the direction of Intel i.e., Intel and IShares VII go up and down completely randomly.
Pair Corralation between Intel and IShares VII
Given the investment horizon of 90 days Intel is expected to generate 3.17 times more return on investment than IShares VII. However, Intel is 3.17 times more volatile than iShares VII Public. It trades about 0.11 of its potential returns per unit of risk. iShares VII Public is currently generating about 0.33 per unit of risk. If you would invest 2,252 in Intel on September 4, 2024 and sell it today you would earn a total of 141.00 from holding Intel or generate 6.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. iShares VII Public
Performance |
| Timeline |
| Intel |
| iShares VII Public |
Intel and IShares VII Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IShares VII
The main advantage of trading using opposite Intel and IShares VII positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IShares VII 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 IShares VII will offset losses from the drop in IShares VII's long position.| Intel vs. NXP Semiconductors NV | Intel vs. Analog Devices | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |