Correlation Between Intel and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Intel and IShares MSCI 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 MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and iShares MSCI EAFE, you can compare the effects of market volatilities on Intel and IShares MSCI 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 MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IShares MSCI.
Diversification Opportunities for Intel and IShares MSCI
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and IShares is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Intel and iShares MSCI EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI EAFE 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 MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI EAFE has no effect on the direction of Intel i.e., Intel and IShares MSCI go up and down completely randomly.
Pair Corralation between Intel and IShares MSCI
Given the investment horizon of 90 days Intel is expected to generate 4.03 times more return on investment than IShares MSCI. However, Intel is 4.03 times more volatile than iShares MSCI EAFE. It trades about 0.16 of its potential returns per unit of risk. iShares MSCI EAFE is currently generating about -0.2 per unit of risk. If you would invest 2,198 in Intel on August 24, 2024 and sell it today you would earn a total of 246.00 from holding Intel or generate 11.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. iShares MSCI EAFE
Performance |
| Timeline |
| Intel |
| iShares MSCI EAFE |
Intel and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IShares MSCI
The main advantage of trading using opposite Intel and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IShares MSCI 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 MSCI will offset losses from the drop in IShares MSCI's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. iShares Russell Mid Cap | IShares MSCI vs. iShares MSCI Netherlands |
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.
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