Correlation Between Intel and Money Market
Can any of the company-specific risk be diversified away by investing in both Intel and Money Market 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 Money Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Money Market Obligations, you can compare the effects of market volatilities on Intel and Money Market 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 Money Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Money Market.
Diversification Opportunities for Intel and Money Market
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Money is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Money Market Obligations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Money Market Obligations 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 Money Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Money Market Obligations has no effect on the direction of Intel i.e., Intel and Money Market go up and down completely randomly.
Pair Corralation between Intel and Money Market
If you would invest 2,252 in Intel on September 3, 2024 and sell it today you would earn a total of 153.00 from holding Intel or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Money Market Obligations
Performance |
| Timeline |
| Intel |
| Money Market Obligations |
Intel and Money Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Money Market
The main advantage of trading using opposite Intel and Money Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Money Market 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 Money Market will offset losses from the drop in Money Market's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard 500 Index | Money Market vs. Vanguard Total Stock | Money Market vs. Vanguard Total Stock |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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