Correlation Between Intel and IQ Hedge
Can any of the company-specific risk be diversified away by investing in both Intel and IQ Hedge 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 IQ Hedge into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and IQ Hedge Multi Strategy, you can compare the effects of market volatilities on Intel and IQ Hedge 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 IQ Hedge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IQ Hedge.
Diversification Opportunities for Intel and IQ Hedge
Almost no diversification
The 3 months correlation between Intel and QAI is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Intel and IQ Hedge Multi Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IQ Hedge Multi 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 IQ Hedge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IQ Hedge Multi has no effect on the direction of Intel i.e., Intel and IQ Hedge go up and down completely randomly.
Pair Corralation between Intel and IQ Hedge
Given the investment horizon of 90 days Intel is expected to under-perform the IQ Hedge. In addition to that, Intel is 9.37 times more volatile than IQ Hedge Multi Strategy. It trades about -0.01 of its total potential returns per unit of risk. IQ Hedge Multi Strategy is currently generating about 0.12 per unit of volatility. If you would invest 2,837 in IQ Hedge Multi Strategy on August 31, 2024 and sell it today you would earn a total of 425.00 from holding IQ Hedge Multi Strategy or generate 14.98% 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. IQ Hedge Multi Strategy
Performance |
| Timeline |
| Intel |
| IQ Hedge Multi |
Intel and IQ Hedge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IQ Hedge
The main advantage of trading using opposite Intel and IQ Hedge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IQ Hedge 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 IQ Hedge will offset losses from the drop in IQ Hedge's long position.The idea behind Intel and IQ Hedge Multi Strategy 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.| IQ Hedge vs. Tidal ETF Trust | IQ Hedge vs. Eaton Vance Enhanced | IQ Hedge vs. Grayscale Ethereum Mini | IQ Hedge vs. Intel |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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