Correlation Between Intel and GENERAL
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By analyzing existing cross correlation between Intel and GENERAL DYNAMICS PORATION, you can compare the effects of market volatilities on Intel and GENERAL 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 GENERAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and GENERAL.
Diversification Opportunities for Intel and GENERAL
Pay attention - limited upside
The 3 months correlation between Intel and GENERAL is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Intel and GENERAL DYNAMICS PORATION in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GENERAL DYNAMICS PORATION 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 GENERAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GENERAL DYNAMICS PORATION has no effect on the direction of Intel i.e., Intel and GENERAL go up and down completely randomly.
Pair Corralation between Intel and GENERAL
Given the investment horizon of 90 days Intel is expected to under-perform the GENERAL. In addition to that, Intel is 6.33 times more volatile than GENERAL DYNAMICS PORATION. It trades about 0.0 of its total potential returns per unit of risk. GENERAL DYNAMICS PORATION is currently generating about -0.01 per unit of volatility. If you would invest 9,539 in GENERAL DYNAMICS PORATION on August 29, 2024 and sell it today you would lose (169.00) from holding GENERAL DYNAMICS PORATION or give up 1.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. GENERAL DYNAMICS PORATION
Performance |
| Timeline |
| Intel |
| GENERAL DYNAMICS PORATION |
Intel and GENERAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and GENERAL
The main advantage of trading using opposite Intel and GENERAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, GENERAL 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 GENERAL will offset losses from the drop in GENERAL's long position.The idea behind Intel and GENERAL DYNAMICS PORATION 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.| GENERAL vs. The Coca Cola | GENERAL vs. JPMorgan Chase Co | GENERAL vs. Dupont De Nemours | GENERAL vs. Alcoa Corp |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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