Correlation Between Intel and Nkarta
Can any of the company-specific risk be diversified away by investing in both Intel and Nkarta 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 Nkarta into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Nkarta Inc, you can compare the effects of market volatilities on Intel and Nkarta 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 Nkarta. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Nkarta.
Diversification Opportunities for Intel and Nkarta
Pay attention - limited upside
The 3 months correlation between Intel and Nkarta is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Nkarta Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nkarta Inc 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 Nkarta. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nkarta Inc has no effect on the direction of Intel i.e., Intel and Nkarta go up and down completely randomly.
Pair Corralation between Intel and Nkarta
Given the investment horizon of 90 days Intel is expected to generate 0.62 times more return on investment than Nkarta. However, Intel is 1.61 times less risky than Nkarta. It trades about 0.01 of its potential returns per unit of risk. Nkarta Inc is currently generating about -0.26 per unit of risk. If you would invest 2,346 in Intel on August 29, 2024 and sell it today you would lose (20.50) from holding Intel or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Nkarta Inc
Performance |
| Timeline |
| Intel |
| Nkarta Inc |
Intel and Nkarta Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Nkarta
The main advantage of trading using opposite Intel and Nkarta positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Nkarta 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 Nkarta will offset losses from the drop in Nkarta'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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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