Correlation Between Intel and EA Series
Can any of the company-specific risk be diversified away by investing in both Intel and EA Series 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 EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and EA Series Trust, you can compare the effects of market volatilities on Intel and EA Series 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 EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and EA Series.
Diversification Opportunities for Intel and EA Series
Poor diversification
The 3 months correlation between Intel and FTWO is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Intel and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust 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 EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Intel i.e., Intel and EA Series go up and down completely randomly.
Pair Corralation between Intel and EA Series
Given the investment horizon of 90 days Intel is expected to generate 3.2 times more return on investment than EA Series. However, Intel is 3.2 times more volatile than EA Series Trust. It trades about 0.16 of its potential returns per unit of risk. EA Series Trust is currently generating about -0.04 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 Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. EA Series Trust
Performance |
| Timeline |
| Intel |
| EA Series Trust |
Intel and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and EA Series
The main advantage of trading using opposite Intel and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| EA Series vs. Franklin Templeton ETF | EA Series vs. Tidal Trust II | EA Series vs. Tidal Trust II | EA Series vs. iShares Dividend and |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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