Correlation Between Intel and ProShares UltraShort
Can any of the company-specific risk be diversified away by investing in both Intel and ProShares UltraShort 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 ProShares UltraShort into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and ProShares UltraShort Oil, you can compare the effects of market volatilities on Intel and ProShares UltraShort 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 ProShares UltraShort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ProShares UltraShort.
Diversification Opportunities for Intel and ProShares UltraShort
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and ProShares is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProShares UltraShort Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares UltraShort Oil 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 ProShares UltraShort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares UltraShort Oil has no effect on the direction of Intel i.e., Intel and ProShares UltraShort go up and down completely randomly.
Pair Corralation between Intel and ProShares UltraShort
Given the investment horizon of 90 days Intel is expected to generate 1.59 times more return on investment than ProShares UltraShort. However, Intel is 1.59 times more volatile than ProShares UltraShort Oil. It trades about 0.06 of its potential returns per unit of risk. ProShares UltraShort Oil is currently generating about -0.31 per unit of risk. If you would invest 2,290 in Intel on August 30, 2024 and sell it today you would earn a total of 75.00 from holding Intel or generate 3.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. ProShares UltraShort Oil
Performance |
| Timeline |
| Intel |
| ProShares UltraShort Oil |
Intel and ProShares UltraShort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and ProShares UltraShort
The main advantage of trading using opposite Intel and ProShares UltraShort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, ProShares UltraShort 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 ProShares UltraShort will offset losses from the drop in ProShares UltraShort's long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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