Correlation Between Intel and Capitol Series
Can any of the company-specific risk be diversified away by investing in both Intel and Capitol Series 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 Capitol Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Capitol Series Trust, you can compare the effects of market volatilities on Intel and Capitol Series 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 Capitol Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Capitol Series.
Diversification Opportunities for Intel and Capitol Series
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and Capitol is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Capitol Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitol Series Trust 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 Capitol Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitol Series Trust has no effect on the direction of Intel i.e., Intel and Capitol Series go up and down completely randomly.
Pair Corralation between Intel and Capitol Series
Given the investment horizon of 90 days Intel is expected to generate 4.37 times more return on investment than Capitol Series. However, Intel is 4.37 times more volatile than Capitol Series Trust. It trades about 0.09 of its potential returns per unit of risk. Capitol Series Trust is currently generating about 0.21 per unit of risk. If you would invest 2,230 in Intel on August 31, 2024 and sell it today you would earn a total of 135.00 from holding Intel or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Capitol Series Trust
Performance |
| Timeline |
| Intel |
| Capitol Series Trust |
Intel and Capitol Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Capitol Series
The main advantage of trading using opposite Intel and Capitol Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Capitol Series 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 Capitol Series will offset losses from the drop in Capitol Series' long position.The idea behind Intel and Capitol Series Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Capitol Series vs. First Trust LongShort | Capitol Series vs. Cambria Global Momentum | Capitol Series vs. Cambria Global Asset | Capitol Series vs. ProShares Hedge Replication |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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