Correlation Between Intel and TELEFONICA
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By analyzing existing cross correlation between Intel and TELEFONICA EMISIONES S, you can compare the effects of market volatilities on Intel and TELEFONICA 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 TELEFONICA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and TELEFONICA.
Diversification Opportunities for Intel and TELEFONICA
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and TELEFONICA is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intel and TELEFONICA EMISIONES S in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELEFONICA EMISIONES 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 TELEFONICA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELEFONICA EMISIONES has no effect on the direction of Intel i.e., Intel and TELEFONICA go up and down completely randomly.
Pair Corralation between Intel and TELEFONICA
Given the investment horizon of 90 days Intel is expected to generate 2.26 times more return on investment than TELEFONICA. However, Intel is 2.26 times more volatile than TELEFONICA EMISIONES S. It trades about 0.02 of its potential returns per unit of risk. TELEFONICA EMISIONES S is currently generating about -0.07 per unit of risk. If you would invest 2,346 in Intel on August 31, 2024 and sell it today you would earn a total of 19.00 from holding Intel or generate 0.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Intel vs. TELEFONICA EMISIONES S
Performance |
| Timeline |
| Intel |
| TELEFONICA EMISIONES |
Intel and TELEFONICA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and TELEFONICA
The main advantage of trading using opposite Intel and TELEFONICA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, TELEFONICA 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 TELEFONICA will offset losses from the drop in TELEFONICA's long position.The idea behind Intel and TELEFONICA EMISIONES S 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.| TELEFONICA vs. AEP TEX INC | TELEFONICA vs. US BANK NATIONAL | TELEFONICA vs. Bank of America | TELEFONICA 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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