Correlation Between Intel and BAXTER
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By analyzing existing cross correlation between Intel and BAXTER INTL INC, you can compare the effects of market volatilities on Intel and BAXTER 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 BAXTER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BAXTER.
Diversification Opportunities for Intel and BAXTER
Very good diversification
The 3 months correlation between Intel and BAXTER is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BAXTER INTL INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BAXTER INTL INC 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 BAXTER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BAXTER INTL INC has no effect on the direction of Intel i.e., Intel and BAXTER go up and down completely randomly.
Pair Corralation between Intel and BAXTER
Given the investment horizon of 90 days Intel is expected to generate 6.64 times more return on investment than BAXTER. However, Intel is 6.64 times more volatile than BAXTER INTL INC. It trades about 0.0 of its potential returns per unit of risk. BAXTER INTL INC is currently generating about 0.0 per unit of risk. If you would invest 2,770 in Intel on September 3, 2024 and sell it today you would lose (365.00) from holding Intel or give up 13.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.96% |
| Values | Daily Returns |
Intel vs. BAXTER INTL INC
Performance |
| Timeline |
| Intel |
| BAXTER INTL INC |
Intel and BAXTER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BAXTER
The main advantage of trading using opposite Intel and BAXTER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BAXTER 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 BAXTER will offset losses from the drop in BAXTER's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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