Correlation Between Intel and ENTERGY
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By analyzing existing cross correlation between Intel and ENTERGY TEX INC, you can compare the effects of market volatilities on Intel and ENTERGY 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 ENTERGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ENTERGY.
Diversification Opportunities for Intel and ENTERGY
Excellent diversification
The 3 months correlation between Intel and ENTERGY is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ENTERGY TEX INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ENTERGY TEX 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 ENTERGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ENTERGY TEX INC has no effect on the direction of Intel i.e., Intel and ENTERGY go up and down completely randomly.
Pair Corralation between Intel and ENTERGY
Given the investment horizon of 90 days Intel is expected to under-perform the ENTERGY. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 28.21 times less risky than ENTERGY. The stock trades about -0.01 of its potential returns per unit of risk. The ENTERGY TEX INC is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 9,542 in ENTERGY TEX INC on August 31, 2024 and sell it today you would earn a total of 90.00 from holding ENTERGY TEX INC or generate 0.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 77.27% |
| Values | Daily Returns |
Intel vs. ENTERGY TEX INC
Performance |
| Timeline |
| Intel |
| ENTERGY TEX INC |
Intel and ENTERGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and ENTERGY
The main advantage of trading using opposite Intel and ENTERGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, ENTERGY 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 ENTERGY will offset losses from the drop in ENTERGY's long position.The idea behind Intel and ENTERGY TEX 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.| ENTERGY vs. AEP TEX INC | ENTERGY vs. US BANK NATIONAL | ENTERGY vs. International Business Machines | ENTERGY vs. Intel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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