Correlation Between Intel and NEWFIELD
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By analyzing existing cross correlation between Intel and NEWFIELD EXPL 5375, you can compare the effects of market volatilities on Intel and NEWFIELD 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 NEWFIELD. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and NEWFIELD.
Diversification Opportunities for Intel and NEWFIELD
Excellent diversification
The 3 months correlation between Intel and NEWFIELD is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Intel and NEWFIELD EXPL 5375 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEWFIELD EXPL 5375 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 NEWFIELD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEWFIELD EXPL 5375 has no effect on the direction of Intel i.e., Intel and NEWFIELD go up and down completely randomly.
Pair Corralation between Intel and NEWFIELD
Given the investment horizon of 90 days Intel is expected to generate 14.83 times more return on investment than NEWFIELD. However, Intel is 14.83 times more volatile than NEWFIELD EXPL 5375. It trades about 0.09 of its potential returns per unit of risk. NEWFIELD EXPL 5375 is currently generating about 0.12 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 | 95.45% |
| Values | Daily Returns |
Intel vs. NEWFIELD EXPL 5375
Performance |
| Timeline |
| Intel |
| NEWFIELD EXPL 5375 |
Intel and NEWFIELD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and NEWFIELD
The main advantage of trading using opposite Intel and NEWFIELD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, NEWFIELD 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 NEWFIELD will offset losses from the drop in NEWFIELD's long position.The idea behind Intel and NEWFIELD EXPL 5375 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.| NEWFIELD vs. BBB Foods | NEWFIELD vs. Beyond Meat | NEWFIELD vs. Allegheny Technologies Incorporated | NEWFIELD vs. Insteel Industries |
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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