Correlation Between Intel and Payden Emerging
Can any of the company-specific risk be diversified away by investing in both Intel and Payden Emerging 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 Payden Emerging into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Payden Emerging Markets, you can compare the effects of market volatilities on Intel and Payden Emerging 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 Payden Emerging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Payden Emerging.
Diversification Opportunities for Intel and Payden Emerging
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Payden is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Payden Emerging Markets in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Payden Emerging Markets 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 Payden Emerging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Payden Emerging Markets has no effect on the direction of Intel i.e., Intel and Payden Emerging go up and down completely randomly.
Pair Corralation between Intel and Payden Emerging
Given the investment horizon of 90 days Intel is expected to generate 6.53 times more return on investment than Payden Emerging. However, Intel is 6.53 times more volatile than Payden Emerging Markets. It trades about 0.17 of its potential returns per unit of risk. Payden Emerging Markets is currently generating about -0.09 per unit of risk. If you would invest 2,152 in Intel on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Intel or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Intel vs. Payden Emerging Markets
Performance |
| Timeline |
| Intel |
| Payden Emerging Markets |
Intel and Payden Emerging Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Payden Emerging
The main advantage of trading using opposite Intel and Payden Emerging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Payden Emerging 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 Payden Emerging will offset losses from the drop in Payden Emerging's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Payden Emerging vs. Payden Porate Bond | Payden Emerging vs. Payden Absolute Return | Payden Emerging vs. Payden Absolute Return | Payden Emerging vs. Payden Emerging Markets |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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