Correlation Between Intel and BIOGEN
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By analyzing existing cross correlation between Intel and BIOGEN INC, you can compare the effects of market volatilities on Intel and BIOGEN 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 BIOGEN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BIOGEN.
Diversification Opportunities for Intel and BIOGEN
Very good diversification
The 3 months correlation between Intel and BIOGEN is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BIOGEN INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIOGEN 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 BIOGEN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIOGEN INC has no effect on the direction of Intel i.e., Intel and BIOGEN go up and down completely randomly.
Pair Corralation between Intel and BIOGEN
Given the investment horizon of 90 days Intel is expected to generate 1.02 times more return on investment than BIOGEN. However, Intel is 1.02 times more volatile than BIOGEN INC. It trades about 0.17 of its potential returns per unit of risk. BIOGEN INC is currently generating about 0.02 per unit of risk. If you would invest 2,152 in Intel on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Intel or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Intel vs. BIOGEN INC
Performance |
| Timeline |
| Intel |
| BIOGEN INC |
Intel and BIOGEN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and BIOGEN
The main advantage of trading using opposite Intel and BIOGEN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BIOGEN 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 BIOGEN will offset losses from the drop in BIOGEN's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
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