Correlation Between Intel and Occidental
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By analyzing existing cross correlation between Intel and Occidental Petroleum 66, you can compare the effects of market volatilities on Intel and Occidental 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 Occidental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Occidental.
Diversification Opportunities for Intel and Occidental
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Occidental is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Occidental Petroleum 66 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Occidental Petroleum 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 Occidental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Occidental Petroleum has no effect on the direction of Intel i.e., Intel and Occidental go up and down completely randomly.
Pair Corralation between Intel and Occidental
Given the investment horizon of 90 days Intel is expected to under-perform the Occidental. In addition to that, Intel is 3.42 times more volatile than Occidental Petroleum 66. It trades about -0.01 of its total potential returns per unit of risk. Occidental Petroleum 66 is currently generating about 0.02 per unit of volatility. If you would invest 10,237 in Occidental Petroleum 66 on August 31, 2024 and sell it today you would earn a total of 566.00 from holding Occidental Petroleum 66 or generate 5.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.86% |
| Values | Daily Returns |
Intel vs. Occidental Petroleum 66
Performance |
| Timeline |
| Intel |
| Occidental Petroleum |
Intel and Occidental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Occidental
The main advantage of trading using opposite Intel and Occidental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Occidental 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 Occidental will offset losses from the drop in Occidental's long position.The idea behind Intel and Occidental Petroleum 66 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.| Occidental vs. AEP TEX INC | Occidental vs. US BANK NATIONAL | Occidental vs. Bank of America | Occidental 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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