Correlation Between Intel and Fuse Medical
Can any of the company-specific risk be diversified away by investing in both Intel and Fuse Medical 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 Fuse Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Fuse Medical, you can compare the effects of market volatilities on Intel and Fuse Medical 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 Fuse Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Fuse Medical.
Diversification Opportunities for Intel and Fuse Medical
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Fuse is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Fuse Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuse Medical 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 Fuse Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuse Medical has no effect on the direction of Intel i.e., Intel and Fuse Medical go up and down completely randomly.
Pair Corralation between Intel and Fuse Medical
Given the investment horizon of 90 days Intel is expected to generate 27.47 times less return on investment than Fuse Medical. But when comparing it to its historical volatility, Intel is 9.69 times less risky than Fuse Medical. It trades about 0.04 of its potential returns per unit of risk. Fuse Medical is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 5.00 in Fuse Medical on December 8, 2024 and sell it today you would earn a total of 4.99 from holding Fuse Medical or generate 99.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.2% |
| Values | Daily Returns |
Intel vs. Fuse Medical
Performance |
| Timeline |
| Intel |
| Fuse Medical |
Intel and Fuse Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Fuse Medical
The main advantage of trading using opposite Intel and Fuse Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Fuse Medical 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 Fuse Medical will offset losses from the drop in Fuse Medical's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Fuse Medical vs. Vivos Therapeutics | Fuse Medical vs. Cerus | Fuse Medical vs. Boston Scientific Corp | Fuse Medical vs. Novacyt SA |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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