Correlation Between Intel and EXXON
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By analyzing existing cross correlation between Intel and EXXON MOBIL P, you can compare the effects of market volatilities on Intel and EXXON 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 EXXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and EXXON.
Diversification Opportunities for Intel and EXXON
Poor diversification
The 3 months correlation between Intel and EXXON is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Intel and EXXON MOBIL P in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXXON MOBIL P 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 EXXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXXON MOBIL P has no effect on the direction of Intel i.e., Intel and EXXON go up and down completely randomly.
Pair Corralation between Intel and EXXON
Given the investment horizon of 90 days Intel is expected to generate 98.85 times less return on investment than EXXON. But when comparing it to its historical volatility, Intel is 22.14 times less risky than EXXON. It trades about 0.01 of its potential returns per unit of risk. EXXON MOBIL P is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 7,191 in EXXON MOBIL P on November 19, 2024 and sell it today you would earn a total of 288.00 from holding EXXON MOBIL P or generate 4.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 97.58% |
| Values | Daily Returns |
Intel vs. EXXON MOBIL P
Performance |
| Timeline |
| Intel |
| EXXON MOBIL P |
Intel and EXXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and EXXON
The main advantage of trading using opposite Intel and EXXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, EXXON 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 EXXON will offset losses from the drop in EXXON's long position.| Intel vs. Diodes Incorporated | Intel vs. Daqo New Energy | Intel vs. Micron Technology | Intel vs. MagnaChip Semiconductor |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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