Correlation Between Intel and Global Clean
Can any of the company-specific risk be diversified away by investing in both Intel and Global Clean 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 Global Clean into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Global Clean Energy, you can compare the effects of market volatilities on Intel and Global Clean 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 Global Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Global Clean.
Diversification Opportunities for Intel and Global Clean
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Global is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Global Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Clean Energy 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 Global Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Clean Energy has no effect on the direction of Intel i.e., Intel and Global Clean go up and down completely randomly.
Pair Corralation between Intel and Global Clean
Given the investment horizon of 90 days Intel is expected to generate 0.44 times more return on investment than Global Clean. However, Intel is 2.29 times less risky than Global Clean. It trades about 0.05 of its potential returns per unit of risk. Global Clean Energy is currently generating about -0.42 per unit of risk. If you would invest 2,044 in Intel on October 26, 2024 and sell it today you would earn a total of 39.00 from holding Intel or generate 1.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Global Clean Energy
Performance |
| Timeline |
| Intel |
| Global Clean Energy |
Intel and Global Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Global Clean
The main advantage of trading using opposite Intel and Global Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Global Clean 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 Global Clean will offset losses from the drop in Global Clean's long position.| Intel vs. Diodes Incorporated | Intel vs. Daqo New Energy | Intel vs. Micron Technology | Intel vs. MagnaChip Semiconductor |
| Global Clean vs. Edible Garden AG | Global Clean vs. Golden Agri Resources | Global Clean vs. Local Bounti Corp | Global Clean vs. Village Farms International |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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