Correlation Between Intel and Universal Power
Can any of the company-specific risk be diversified away by investing in both Intel and Universal Power 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 Universal Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Universal Power Industry, you can compare the effects of market volatilities on Intel and Universal Power 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 Universal Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Universal Power.
Diversification Opportunities for Intel and Universal Power
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intel and Universal is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Universal Power Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Power Industry 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 Universal Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Power Industry has no effect on the direction of Intel i.e., Intel and Universal Power go up and down completely randomly.
Pair Corralation between Intel and Universal Power
If you would invest 2,346 in Intel on August 29, 2024 and sell it today you would lose (20.50) from holding Intel or give up 0.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 97.67% |
| Values | Daily Returns |
Intel vs. Universal Power Industry
Performance |
| Timeline |
| Intel |
| Universal Power Industry |
Intel and Universal Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Universal Power
The main advantage of trading using opposite Intel and Universal Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Universal Power 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 Universal Power will offset losses from the drop in Universal Power's long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
| Universal Power vs. National Health Scan | Universal Power vs. Protect Pharmaceutical | Universal Power vs. World Oil Group | Universal Power vs. Steel Partners Holdings |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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