Correlation Between Intel and 191216CE8
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By analyzing existing cross correlation between Intel and COCA A 29, you can compare the effects of market volatilities on Intel and 191216CE8 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 191216CE8. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and 191216CE8.
Diversification Opportunities for Intel and 191216CE8
Excellent diversification
The 3 months correlation between Intel and 191216CE8 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and COCA A 29 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A 29 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 191216CE8. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A 29 has no effect on the direction of Intel i.e., Intel and 191216CE8 go up and down completely randomly.
Pair Corralation between Intel and 191216CE8
Given the investment horizon of 90 days Intel is expected to generate 3.75 times more return on investment than 191216CE8. However, Intel is 3.75 times more volatile than COCA A 29. It trades about 0.09 of its potential returns per unit of risk. COCA A 29 is currently generating about -0.16 per unit of risk. If you would invest 2,230 in Intel on August 31, 2024 and sell it today you would earn a total of 135.00 from holding Intel or generate 6.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Intel vs. COCA A 29
Performance |
| Timeline |
| Intel |
| COCA A 29 |
Intel and 191216CE8 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and 191216CE8
The main advantage of trading using opposite Intel and 191216CE8 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, 191216CE8 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 191216CE8 will offset losses from the drop in 191216CE8's long position.The idea behind Intel and COCA A 29 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.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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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