Correlation Between Intel and FT Cboe
Can any of the company-specific risk be diversified away by investing in both Intel and FT Cboe 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 FT Cboe into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and FT Cboe Vest, you can compare the effects of market volatilities on Intel and FT Cboe 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 FT Cboe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and FT Cboe.
Diversification Opportunities for Intel and FT Cboe
Almost no diversification
The 3 months correlation between Intel and FAPR is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Intel and FT Cboe Vest in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FT Cboe Vest 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 FT Cboe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FT Cboe Vest has no effect on the direction of Intel i.e., Intel and FT Cboe go up and down completely randomly.
Pair Corralation between Intel and FT Cboe
Given the investment horizon of 90 days Intel is expected to under-perform the FT Cboe. In addition to that, Intel is 8.41 times more volatile than FT Cboe Vest. It trades about -0.07 of its total potential returns per unit of risk. FT Cboe Vest is currently generating about 0.18 per unit of volatility. If you would invest 3,612 in FT Cboe Vest on September 1, 2024 and sell it today you would earn a total of 529.00 from holding FT Cboe Vest or generate 14.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.47% |
| Values | Daily Returns |
Intel vs. FT Cboe Vest
Performance |
| Timeline |
| Intel |
| FT Cboe Vest |
Intel and FT Cboe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and FT Cboe
The main advantage of trading using opposite Intel and FT Cboe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, FT Cboe 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 FT Cboe will offset losses from the drop in FT Cboe's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| FT Cboe vs. Innovator ETFs Trust | FT Cboe vs. First Trust Cboe | FT Cboe vs. Innovator SP 500 | FT Cboe vs. Innovator Equity Power |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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