Correlation Between Intel and Cazoo
Can any of the company-specific risk be diversified away by investing in both Intel and Cazoo 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 Cazoo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Cazoo Group, you can compare the effects of market volatilities on Intel and Cazoo 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 Cazoo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Cazoo.
Diversification Opportunities for Intel and Cazoo
Pay attention - limited upside
The 3 months correlation between Intel and Cazoo is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Cazoo Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cazoo 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 Cazoo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cazoo Group has no effect on the direction of Intel i.e., Intel and Cazoo go up and down completely randomly.
Pair Corralation between Intel and Cazoo
Given the investment horizon of 90 days Intel is expected to generate 278.12 times less return on investment than Cazoo. But when comparing it to its historical volatility, Intel is 22.46 times less risky than Cazoo. It trades about 0.0 of its potential returns per unit of risk. Cazoo Group is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 52,780 in Cazoo Group on August 24, 2024 and sell it today you would lose (52,779) from holding Cazoo Group or give up 100.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 82.66% |
| Values | Daily Returns |
Intel vs. Cazoo Group
Performance |
| Timeline |
| Intel |
| Cazoo Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Cazoo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Cazoo
The main advantage of trading using opposite Intel and Cazoo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Cazoo 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 Cazoo will offset losses from the drop in Cazoo's long position.| Intel vs. Eshallgo Class A | Intel vs. Amtech Systems | Intel vs. Gold Fields Ltd | Intel vs. Aegean Airlines SA |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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