Correlation Between Intel and Evotec SE
Can any of the company-specific risk be diversified away by investing in both Intel and Evotec SE 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 Evotec SE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Evotec SE, you can compare the effects of market volatilities on Intel and Evotec SE 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 Evotec SE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Evotec SE.
Diversification Opportunities for Intel and Evotec SE
Excellent diversification
The 3 months correlation between Intel and Evotec is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Evotec SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evotec SE 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 Evotec SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evotec SE has no effect on the direction of Intel i.e., Intel and Evotec SE go up and down completely randomly.
Pair Corralation between Intel and Evotec SE
If you would invest 2,029 in Intel on November 28, 2024 and sell it today you would earn a total of 270.00 from holding Intel or generate 13.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intel vs. Evotec SE
Performance |
| Timeline |
| Intel |
| Evotec SE |
Intel and Evotec SE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Evotec SE
The main advantage of trading using opposite Intel and Evotec SE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Evotec SE 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 Evotec SE will offset losses from the drop in Evotec SE's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Evotec SE vs. Pacira BioSciences, | Evotec SE vs. Collegium Pharmaceutical | Evotec SE vs. Prestige Brand Holdings | Evotec SE vs. Phibro Animal Health |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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