Correlation Between Intel and USA Equities
Can any of the company-specific risk be diversified away by investing in both Intel and USA Equities at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Intel and USA Equities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and USA Equities Corp, you can compare the effects of market volatilities on Intel and USA Equities 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 USA Equities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and USA Equities.
Diversification Opportunities for Intel and USA Equities
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and USA is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Intel and USA Equities Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USA Equities Corp 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 USA Equities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USA Equities Corp has no effect on the direction of Intel i.e., Intel and USA Equities go up and down completely randomly.
Pair Corralation between Intel and USA Equities
Given the investment horizon of 90 days Intel is expected to generate 161.53 times less return on investment than USA Equities. But when comparing it to its historical volatility, Intel is 7.78 times less risky than USA Equities. It trades about 0.0 of its potential returns per unit of risk. USA Equities Corp is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 16.00 in USA Equities Corp on August 29, 2024 and sell it today you would earn a total of 2.00 from holding USA Equities Corp or generate 12.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. USA Equities Corp
Performance |
| Timeline |
| Intel |
| USA Equities Corp |
Intel and USA Equities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and USA Equities
The main advantage of trading using opposite Intel and USA Equities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, USA Equities 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 USA Equities will offset losses from the drop in USA Equities' long position.| Intel vs. ABIVAX Socit Anonyme | Intel vs. Morningstar Unconstrained Allocation | Intel vs. SPACE | Intel vs. Knife River |
| USA Equities vs. Brainsway | USA Equities vs. Venus Concept | USA Equities vs. Tactile Systems Technology | USA Equities vs. Icecure Medical |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |