Correlation Between Intel and Great Elm
Can any of the company-specific risk be diversified away by investing in both Intel and Great Elm 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 Great Elm into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Great Elm Capital, you can compare the effects of market volatilities on Intel and Great Elm 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 Great Elm. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Great Elm.
Diversification Opportunities for Intel and Great Elm
Poor diversification
The 3 months correlation between Intel and Great is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Great Elm Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Elm Capital 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 Great Elm. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Elm Capital has no effect on the direction of Intel i.e., Intel and Great Elm go up and down completely randomly.
Pair Corralation between Intel and Great Elm
If you would invest 2,346 in Intel on August 30, 2024 and sell it today you would earn a total of 19.00 from holding Intel or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 2.33% |
| Values | Daily Returns |
Intel vs. Great Elm Capital
Performance |
| Timeline |
| Intel |
| Great Elm Capital |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Great Elm Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Great Elm
The main advantage of trading using opposite Intel and Great Elm positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Great Elm 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 Great Elm will offset losses from the drop in Great Elm's long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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