Correlation Between Intel and First American
Can any of the company-specific risk be diversified away by investing in both Intel and First American 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 First American into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and First American Funds, you can compare the effects of market volatilities on Intel and First American 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 First American. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and First American.
Diversification Opportunities for Intel and First American
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Intel and First is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Intel and First American Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First American Funds 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 First American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First American Funds has no effect on the direction of Intel i.e., Intel and First American go up and down completely randomly.
Pair Corralation between Intel and First American
Given the investment horizon of 90 days Intel is expected to under-perform the First American. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 6.81 times less risky than First American. The stock trades about 0.0 of its potential returns per unit of risk. The First American Funds is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 378.00 in First American Funds on September 12, 2024 and sell it today you would lose (278.00) from holding First American Funds or give up 73.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Intel vs. First American Funds
Performance |
| Timeline |
| Intel |
| First American Funds |
Intel and First American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and First American
The main advantage of trading using opposite Intel and First American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, First American 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 First American will offset losses from the drop in First American's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Micron Technology | Intel vs. Qualcomm Incorporated |
| First American vs. T Rowe Price | First American vs. Blackrock High Yield | First American vs. Jpmorgan High Yield | First American vs. Prudential High Yield |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |