Correlation Between Intel and AMAZON
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By analyzing existing cross correlation between Intel and AMAZON INC 38, you can compare the effects of market volatilities on Intel and AMAZON 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 AMAZON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and AMAZON.
Diversification Opportunities for Intel and AMAZON
Very good diversification
The 3 months correlation between Intel and AMAZON is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Intel and AMAZON INC 38 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMAZON INC 38 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 AMAZON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMAZON INC 38 has no effect on the direction of Intel i.e., Intel and AMAZON go up and down completely randomly.
Pair Corralation between Intel and AMAZON
Given the investment horizon of 90 days Intel is expected to generate 30.61 times more return on investment than AMAZON. However, Intel is 30.61 times more volatile than AMAZON INC 38. It trades about 0.13 of its potential returns per unit of risk. AMAZON INC 38 is currently generating about -0.18 per unit of risk. If you would invest 2,292 in Intel on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Intel or generate 8.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Intel vs. AMAZON INC 38
Performance |
| Timeline |
| Intel |
| AMAZON INC 38 |
Intel and AMAZON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and AMAZON
The main advantage of trading using opposite Intel and AMAZON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, AMAZON 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 AMAZON will offset losses from the drop in AMAZON's long position.The idea behind Intel and AMAZON INC 38 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.| AMAZON vs. Boston Beer | AMAZON vs. GMS Inc | AMAZON vs. National Vision Holdings | AMAZON vs. Constellation Brands Class |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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