Correlation Between Intel and Molecular Templates
Can any of the company-specific risk be diversified away by investing in both Intel and Molecular Templates 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 Molecular Templates into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Molecular Templates, you can compare the effects of market volatilities on Intel and Molecular Templates 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 Molecular Templates. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Molecular Templates.
Diversification Opportunities for Intel and Molecular Templates
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Molecular is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Molecular Templates in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Molecular Templates 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 Molecular Templates. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Molecular Templates has no effect on the direction of Intel i.e., Intel and Molecular Templates go up and down completely randomly.
Pair Corralation between Intel and Molecular Templates
Given the investment horizon of 90 days Intel is expected to generate 0.22 times more return on investment than Molecular Templates. However, Intel is 4.6 times less risky than Molecular Templates. It trades about -0.04 of its potential returns per unit of risk. Molecular Templates is currently generating about -0.01 per unit of risk. If you would invest 3,745 in Intel on September 1, 2024 and sell it today you would lose (1,340) from holding Intel or give up 35.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.63% |
| Values | Daily Returns |
Intel vs. Molecular Templates
Performance |
| Timeline |
| Intel |
| Molecular Templates |
Intel and Molecular Templates Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Molecular Templates
The main advantage of trading using opposite Intel and Molecular Templates positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Molecular Templates 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 Molecular Templates will offset losses from the drop in Molecular Templates' long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Molecular Templates vs. Century Therapeutics | Molecular Templates vs. Kezar Life Sciences | Molecular Templates vs. Mineralys Therapeutics, Common | Molecular Templates vs. Nkarta Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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