Correlation Between Intel and Origin Bancorp

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Can any of the company-specific risk be diversified away by investing in both Intel and Origin Bancorp 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 Origin Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Origin Bancorp, you can compare the effects of market volatilities on Intel and Origin Bancorp 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 Origin Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Origin Bancorp.

Diversification Opportunities for Intel and Origin Bancorp

-0.89
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Intel and Origin is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Origin Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Origin Bancorp 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 Origin Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Origin Bancorp has no effect on the direction of Intel i.e., Intel and Origin Bancorp go up and down completely randomly.

Pair Corralation between Intel and Origin Bancorp

If you would invest  2,290  in Intel on August 30, 2024 and sell it today you would earn a total of  75.00  from holding Intel or generate 3.28% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy4.55%
ValuesDaily Returns

Intel  vs.  Origin Bancorp

 Performance 
       Timeline  
Intel 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in December 2024.
Origin Bancorp 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Origin Bancorp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Origin Bancorp is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Intel and Origin Bancorp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intel and Origin Bancorp

The main advantage of trading using opposite Intel and Origin Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Origin Bancorp 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 Origin Bancorp will offset losses from the drop in Origin Bancorp's long position.
The idea behind Intel and Origin Bancorp 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.
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.

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