Correlation Between Intel and L Catterton
Can any of the company-specific risk be diversified away by investing in both Intel and L Catterton 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 L Catterton into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and L Catterton Asia, you can compare the effects of market volatilities on Intel and L Catterton 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 L Catterton. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and L Catterton.
Diversification Opportunities for Intel and L Catterton
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and LCAA is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Intel and L Catterton Asia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on L Catterton Asia 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 L Catterton. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of L Catterton Asia has no effect on the direction of Intel i.e., Intel and L Catterton go up and down completely randomly.
Pair Corralation between Intel and L Catterton
Given the investment horizon of 90 days Intel is expected to generate 2.47 times less return on investment than L Catterton. In addition to that, Intel is 13.4 times more volatile than L Catterton Asia. It trades about 0.0 of its total potential returns per unit of risk. L Catterton Asia is currently generating about 0.14 per unit of volatility. If you would invest 1,003 in L Catterton Asia on August 29, 2024 and sell it today you would earn a total of 47.00 from holding L Catterton Asia or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 31.45% |
| Values | Daily Returns |
Intel vs. L Catterton Asia
Performance |
| Timeline |
| Intel |
| L Catterton Asia |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and L Catterton Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and L Catterton
The main advantage of trading using opposite Intel and L Catterton positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, L Catterton 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 L Catterton will offset losses from the drop in L Catterton'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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