Correlation Between Intel and IShares ESG
Can any of the company-specific risk be diversified away by investing in both Intel and IShares ESG 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 ESG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and iShares ESG Aware, you can compare the effects of market volatilities on Intel and IShares ESG 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 ESG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IShares ESG.
Diversification Opportunities for Intel and IShares ESG
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Intel and IShares is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Intel and iShares ESG Aware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares ESG Aware 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 ESG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares ESG Aware has no effect on the direction of Intel i.e., Intel and IShares ESG go up and down completely randomly.
Pair Corralation between Intel and IShares ESG
Given the investment horizon of 90 days Intel is expected to generate 3.93 times more return on investment than IShares ESG. However, Intel is 3.93 times more volatile than iShares ESG Aware. It trades about 0.06 of its potential returns per unit of risk. iShares ESG Aware is currently generating about 0.17 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 Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. iShares ESG Aware
Performance |
| Timeline |
| Intel |
| iShares ESG Aware |
Intel and IShares ESG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IShares ESG
The main advantage of trading using opposite Intel and IShares ESG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IShares ESG 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 ESG will offset losses from the drop in IShares ESG's long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
| IShares ESG vs. JPMorgan BetaBuilders International | IShares ESG vs. JPMorgan Core Plus | IShares ESG vs. JPMorgan BetaBuilders Canada | IShares ESG vs. JPMorgan Emerging Markets |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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