Correlation Between Intel and Procaps Group
Can any of the company-specific risk be diversified away by investing in both Intel and Procaps Group 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 Procaps Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Procaps Group SA, you can compare the effects of market volatilities on Intel and Procaps Group 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 Procaps Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Procaps Group.
Diversification Opportunities for Intel and Procaps Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Procaps is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Procaps Group SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Procaps Group SA 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 Procaps Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Procaps Group SA has no effect on the direction of Intel i.e., Intel and Procaps Group go up and down completely randomly.
Pair Corralation between Intel and Procaps Group
Given the investment horizon of 90 days Intel is expected to generate 1.15 times less return on investment than Procaps Group. But when comparing it to its historical volatility, Intel is 7.39 times less risky than Procaps Group. It trades about 0.13 of its potential returns per unit of risk. Procaps Group SA is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 189.00 in Procaps Group SA on August 27, 2024 and sell it today you would lose (62.00) from holding Procaps Group SA or give up 32.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Procaps Group SA
Performance |
| Timeline |
| Intel |
| Procaps Group SA |
Intel and Procaps Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Procaps Group
The main advantage of trading using opposite Intel and Procaps Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Procaps Group 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 Procaps Group will offset losses from the drop in Procaps Group's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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