Correlation Between Intel and Andretti Acquisition
Can any of the company-specific risk be diversified away by investing in both Intel and Andretti Acquisition 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 Andretti Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Andretti Acquisition Corp, you can compare the effects of market volatilities on Intel and Andretti Acquisition 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 Andretti Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Andretti Acquisition.
Diversification Opportunities for Intel and Andretti Acquisition
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Andretti is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Andretti Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andretti Acquisition 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 Andretti Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andretti Acquisition Corp has no effect on the direction of Intel i.e., Intel and Andretti Acquisition go up and down completely randomly.
Pair Corralation between Intel and Andretti Acquisition
If you would invest 2,252 in Intel on September 5, 2024 and sell it today you would lose (5.00) from holding Intel or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Intel vs. Andretti Acquisition Corp
Performance |
| Timeline |
| Intel |
| Andretti Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and Andretti Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Andretti Acquisition
The main advantage of trading using opposite Intel and Andretti Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Andretti Acquisition 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 Andretti Acquisition will offset losses from the drop in Andretti Acquisition's long position.| Intel vs. NXP Semiconductors NV | Intel vs. Monolithic Power Systems | Intel vs. ON Semiconductor | Intel vs. GSI Technology |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |