Correlation Between Intel and EQUINOR
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By analyzing existing cross correlation between Intel and EQUINOR ASA, you can compare the effects of market volatilities on Intel and EQUINOR 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 EQUINOR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and EQUINOR.
Diversification Opportunities for Intel and EQUINOR
Excellent diversification
The 3 months correlation between Intel and EQUINOR is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intel and EQUINOR ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EQUINOR ASA 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 EQUINOR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EQUINOR ASA has no effect on the direction of Intel i.e., Intel and EQUINOR go up and down completely randomly.
Pair Corralation between Intel and EQUINOR
Given the investment horizon of 90 days Intel is expected to generate 7.56 times more return on investment than EQUINOR. However, Intel is 7.56 times more volatile than EQUINOR ASA. It trades about 0.09 of its potential returns per unit of risk. EQUINOR ASA 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 | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. EQUINOR ASA
Performance |
| Timeline |
| Intel |
| EQUINOR ASA |
Intel and EQUINOR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and EQUINOR
The main advantage of trading using opposite Intel and EQUINOR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, EQUINOR 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 EQUINOR will offset losses from the drop in EQUINOR's long position.The idea behind Intel and EQUINOR ASA 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.| EQUINOR vs. AEP TEX INC | EQUINOR vs. US BANK NATIONAL | EQUINOR vs. Bank of America | EQUINOR 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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