Correlation Between Intel and TKB Critical
Can any of the company-specific risk be diversified away by investing in both Intel and TKB Critical 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 TKB Critical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and TKB Critical Technologies, you can compare the effects of market volatilities on Intel and TKB Critical 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 TKB Critical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and TKB Critical.
Diversification Opportunities for Intel and TKB Critical
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intel and TKB is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and TKB Critical Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TKB Critical Technologies 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 TKB Critical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TKB Critical Technologies has no effect on the direction of Intel i.e., Intel and TKB Critical go up and down completely randomly.
Pair Corralation between Intel and TKB Critical
If you would invest 2,292 in Intel on August 29, 2024 and sell it today you would earn a total of 113.00 from holding Intel or generate 4.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
Intel vs. TKB Critical Technologies
Performance |
| Timeline |
| Intel |
| TKB Critical Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and TKB Critical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and TKB Critical
The main advantage of trading using opposite Intel and TKB Critical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, TKB Critical 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 TKB Critical will offset losses from the drop in TKB Critical's long position.The idea behind Intel and TKB Critical Technologies 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.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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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