Correlation Between Intel and Leap Therapeutics
Can any of the company-specific risk be diversified away by investing in both Intel and Leap Therapeutics 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 Leap Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Leap Therapeutics, you can compare the effects of market volatilities on Intel and Leap Therapeutics 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 Leap Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Leap Therapeutics.
Diversification Opportunities for Intel and Leap Therapeutics
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intel and Leap is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Leap Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Leap Therapeutics 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 Leap Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Leap Therapeutics has no effect on the direction of Intel i.e., Intel and Leap Therapeutics go up and down completely randomly.
Pair Corralation between Intel and Leap Therapeutics
Given the investment horizon of 90 days Intel is expected to generate 28.2 times less return on investment than Leap Therapeutics. But when comparing it to its historical volatility, Intel is 2.19 times less risky than Leap Therapeutics. It trades about 0.01 of its potential returns per unit of risk. Leap Therapeutics is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 257.00 in Leap Therapeutics on August 29, 2024 and sell it today you would earn a total of 38.00 from holding Leap Therapeutics or generate 14.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Leap Therapeutics
Performance |
| Timeline |
| Intel |
| Leap Therapeutics |
Intel and Leap Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Leap Therapeutics
The main advantage of trading using opposite Intel and Leap Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Leap Therapeutics 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 Leap Therapeutics will offset losses from the drop in Leap Therapeutics' long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
| Leap Therapeutics vs. Bright Minds Biosciences | Leap Therapeutics vs. HP Inc | Leap Therapeutics vs. Intel | Leap Therapeutics vs. Chevron Corp |
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 CEOs Directory module to screen CEOs from public companies around the world.
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