Correlation Between Intel and Harmonic
Can any of the company-specific risk be diversified away by investing in both Intel and Harmonic 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 Harmonic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Harmonic, you can compare the effects of market volatilities on Intel and Harmonic 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 Harmonic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Harmonic.
Diversification Opportunities for Intel and Harmonic
Very good diversification
The 3 months correlation between Intel and Harmonic is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Harmonic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harmonic 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 Harmonic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harmonic has no effect on the direction of Intel i.e., Intel and Harmonic go up and down completely randomly.
Pair Corralation between Intel and Harmonic
Given the investment horizon of 90 days Intel is expected to under-perform the Harmonic. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.02 times less risky than Harmonic. The stock trades about -0.06 of its potential returns per unit of risk. The Harmonic is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,093 in Harmonic on August 24, 2024 and sell it today you would earn a total of 146.00 from holding Harmonic or generate 13.36% 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. Harmonic
Performance |
| Timeline |
| Intel |
| Harmonic |
Intel and Harmonic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Harmonic
The main advantage of trading using opposite Intel and Harmonic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Harmonic 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 Harmonic will offset losses from the drop in Harmonic's long position.| Intel vs. Eshallgo Class A | Intel vs. Amtech Systems | Intel vs. Gold Fields Ltd | Intel vs. Aegean Airlines SA |
| Harmonic vs. NETGEAR | Harmonic vs. Juniper Networks | Harmonic vs. Digi International | Harmonic vs. Clearfield |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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