Correlation Between Intel and West Mining
Can any of the company-specific risk be diversified away by investing in both Intel and West Mining 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 West Mining into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and West Mining Corp, you can compare the effects of market volatilities on Intel and West Mining 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 West Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and West Mining.
Diversification Opportunities for Intel and West Mining
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and West is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intel and West Mining Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on West Mining 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 West Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of West Mining Corp has no effect on the direction of Intel i.e., Intel and West Mining go up and down completely randomly.
Pair Corralation between Intel and West Mining
Given the investment horizon of 90 days Intel is expected to generate 0.44 times more return on investment than West Mining. However, Intel is 2.25 times less risky than West Mining. It trades about 0.17 of its potential returns per unit of risk. West Mining Corp is currently generating about -0.13 per unit of risk. If you would invest 2,152 in Intel on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Intel or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. West Mining Corp
Performance |
| Timeline |
| Intel |
| West Mining Corp |
Intel and West Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and West Mining
The main advantage of trading using opposite Intel and West Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, West Mining 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 West Mining will offset losses from the drop in West Mining's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| West Mining vs. ATT Inc | West Mining vs. Merck Company | West Mining vs. Walt Disney | West Mining vs. Caterpillar |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Stocks Directory Find actively traded stocks across global markets |