Correlation Between Intel and 26875PAN1
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By analyzing existing cross correlation between Intel and EOG RES INC, you can compare the effects of market volatilities on Intel and 26875PAN1 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 26875PAN1. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and 26875PAN1.
Diversification Opportunities for Intel and 26875PAN1
Excellent diversification
The 3 months correlation between Intel and 26875PAN1 is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intel and EOG RES INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOG RES 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 26875PAN1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOG RES INC has no effect on the direction of Intel i.e., Intel and 26875PAN1 go up and down completely randomly.
Pair Corralation between Intel and 26875PAN1
Given the investment horizon of 90 days Intel is expected to under-perform the 26875PAN1. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 36.23 times less risky than 26875PAN1. The stock trades about 0.0 of its potential returns per unit of risk. The EOG RES INC is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 9,250 in EOG RES INC on August 31, 2024 and sell it today you would earn a total of 120.00 from holding EOG RES INC or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 88.32% |
| Values | Daily Returns |
Intel vs. EOG RES INC
Performance |
| Timeline |
| Intel |
| EOG RES INC |
Intel and 26875PAN1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and 26875PAN1
The main advantage of trading using opposite Intel and 26875PAN1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, 26875PAN1 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 26875PAN1 will offset losses from the drop in 26875PAN1's long position.The idea behind Intel and EOG RES INC 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.| 26875PAN1 vs. AEP TEX INC | 26875PAN1 vs. US BANK NATIONAL | 26875PAN1 vs. Bank of America | 26875PAN1 vs. GE Aerospace |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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