Correlation Between Intel and Smart Global
Can any of the company-specific risk be diversified away by investing in both Intel and Smart Global 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 Smart Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Smart Global Holdings, you can compare the effects of market volatilities on Intel and Smart Global 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 Smart Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Smart Global.
Diversification Opportunities for Intel and Smart Global
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and Smart is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Smart Global Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smart Global Holdings 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 Smart Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smart Global Holdings has no effect on the direction of Intel i.e., Intel and Smart Global go up and down completely randomly.
Pair Corralation between Intel and Smart Global
If you would invest 2,198 in Intel on August 24, 2024 and sell it today you would earn a total of 239.00 from holding Intel or generate 10.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Intel vs. Smart Global Holdings
Performance |
| Timeline |
| Intel |
| Smart Global Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Smart Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Smart Global
The main advantage of trading using opposite Intel and Smart Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Smart Global 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 Smart Global will offset losses from the drop in Smart Global's long position.| Intel vs. Eshallgo Class A | Intel vs. Amtech Systems | Intel vs. Gold Fields Ltd | Intel vs. Aegean Airlines SA |
| Smart Global vs. Silicon Motion Technology | Smart Global vs. MACOM Technology Solutions | Smart Global vs. Semtech | Smart Global vs. Alpha and Omega |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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