Correlation Between Intel and Oshaughnessy Market
Can any of the company-specific risk be diversified away by investing in both Intel and Oshaughnessy Market 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 Oshaughnessy Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Intel and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Oshaughnessy Market.
Diversification Opportunities for Intel and Oshaughnessy Market
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and Oshaughnessy is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Intel i.e., Intel and Oshaughnessy Market go up and down completely randomly.
Pair Corralation between Intel and Oshaughnessy Market
Given the investment horizon of 90 days Intel is expected to under-perform the Oshaughnessy Market. In addition to that, Intel is 3.44 times more volatile than Oshaughnessy Market Leaders. It trades about -0.09 of its total potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about 0.23 per unit of volatility. If you would invest 1,962 in Oshaughnessy Market Leaders on November 4, 2024 and sell it today you would earn a total of 74.00 from holding Oshaughnessy Market Leaders or generate 3.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Oshaughnessy Market Leaders
Performance |
| Timeline |
| Intel |
| Oshaughnessy Market |
Intel and Oshaughnessy Market Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Oshaughnessy Market
The main advantage of trading using opposite Intel and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.The idea behind Intel and Oshaughnessy Market Leaders 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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |