Correlation Between Intel and NEOS ETF
Can any of the company-specific risk be diversified away by investing in both Intel and NEOS ETF 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 NEOS ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and NEOS ETF Trust, you can compare the effects of market volatilities on Intel and NEOS ETF 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 NEOS ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and NEOS ETF.
Diversification Opportunities for Intel and NEOS ETF
Almost no diversification
The 3 months correlation between Intel and NEOS is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Intel and NEOS ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEOS ETF Trust 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 NEOS ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEOS ETF Trust has no effect on the direction of Intel i.e., Intel and NEOS ETF go up and down completely randomly.
Pair Corralation between Intel and NEOS ETF
Given the investment horizon of 90 days Intel is expected to under-perform the NEOS ETF. In addition to that, Intel is 4.28 times more volatile than NEOS ETF Trust. It trades about -0.07 of its total potential returns per unit of risk. NEOS ETF Trust is currently generating about 0.11 per unit of volatility. If you would invest 2,196 in NEOS ETF Trust on August 27, 2024 and sell it today you would earn a total of 398.00 from holding NEOS ETF Trust or generate 18.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. NEOS ETF Trust
Performance |
| Timeline |
| Intel |
| NEOS ETF Trust |
Intel and NEOS ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and NEOS ETF
The main advantage of trading using opposite Intel and NEOS ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, NEOS ETF 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 NEOS ETF will offset losses from the drop in NEOS ETF's long position.The idea behind Intel and NEOS ETF Trust 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.| NEOS ETF vs. Global X Russell | NEOS ETF vs. Global X SP | NEOS ETF vs. Global X NASDAQ | NEOS ETF vs. Amplify CWP Enhanced |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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