Correlation Between Intel and Lig Assets
Can any of the company-specific risk be diversified away by investing in both Intel and Lig Assets 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 Lig Assets into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Lig Assets, you can compare the effects of market volatilities on Intel and Lig Assets 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 Lig Assets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Lig Assets.
Diversification Opportunities for Intel and Lig Assets
-0.7 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Lig is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lig Assets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lig Assets 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 Lig Assets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lig Assets has no effect on the direction of Intel i.e., Intel and Lig Assets go up and down completely randomly.
Pair Corralation between Intel and Lig Assets
Given the investment horizon of 90 days Intel is expected to generate 1148.35 times less return on investment than Lig Assets. But when comparing it to its historical volatility, Intel is 36.12 times less risky than Lig Assets. It trades about 0.0 of its potential returns per unit of risk. Lig Assets is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3.50 in Lig Assets on August 31, 2024 and sell it today you would lose (2.08) from holding Lig Assets or give up 59.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
Intel vs. Lig Assets
Performance |
| Timeline |
| Intel |
| Lig Assets |
Intel and Lig Assets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Lig Assets
The main advantage of trading using opposite Intel and Lig Assets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Lig Assets 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 Lig Assets will offset losses from the drop in Lig Assets' long position.The idea behind Intel and Lig Assets 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.| Lig Assets vs. Beyond Commerce | Lig Assets vs. Baosheng Media Group | Lig Assets vs. MGO Global Common | Lig Assets vs. CMG Holdings Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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