Correlation Between Intel and ProShares
Can any of the company-specific risk be diversified away by investing in both Intel and ProShares 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 ProShares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and ProShares SP Kensho, you can compare the effects of market volatilities on Intel and ProShares 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 ProShares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ProShares.
Diversification Opportunities for Intel and ProShares
Very poor diversification
The 3 months correlation between Intel and ProShares is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProShares SP Kensho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares SP Kensho 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 ProShares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares SP Kensho has no effect on the direction of Intel i.e., Intel and ProShares go up and down completely randomly.
Pair Corralation between Intel and ProShares
Given the investment horizon of 90 days Intel is expected to generate 5.21 times less return on investment than ProShares. In addition to that, Intel is 1.9 times more volatile than ProShares SP Kensho. It trades about 0.0 of its total potential returns per unit of risk. ProShares SP Kensho is currently generating about 0.05 per unit of volatility. If you would invest 3,154 in ProShares SP Kensho on August 30, 2024 and sell it today you would earn a total of 1,062 from holding ProShares SP Kensho or generate 33.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. ProShares SP Kensho
Performance |
| Timeline |
| Intel |
| ProShares SP Kensho |
Intel and ProShares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and ProShares
The main advantage of trading using opposite Intel and ProShares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, ProShares 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 ProShares will offset losses from the drop in ProShares' long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
| ProShares vs. Nexalin Technology | ProShares vs. Kilroy Realty Corp | ProShares vs. Highwoods Properties | ProShares vs. Karat Packaging |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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