Correlation Between Intel and Impact Shares

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Intel and Impact Shares 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 Impact Shares into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Impact Shares YWCA, you can compare the effects of market volatilities on Intel and Impact Shares 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 Impact Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Impact Shares.

Diversification Opportunities for Intel and Impact Shares

0.86
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Intel and Impact is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Impact Shares YWCA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impact Shares YWCA 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 Impact Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impact Shares YWCA has no effect on the direction of Intel i.e., Intel and Impact Shares go up and down completely randomly.

Pair Corralation between Intel and Impact Shares

Given the investment horizon of 90 days Intel is expected to generate 4.39 times more return on investment than Impact Shares. However, Intel is 4.39 times more volatile than Impact Shares YWCA. It trades about 0.09 of its potential returns per unit of risk. Impact Shares YWCA is currently generating about 0.22 per unit of risk. If you would invest  2,230  in Intel on August 31, 2024 and sell it today you would earn a total of  135.00  from holding Intel or generate 6.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Intel  vs.  Impact Shares YWCA

 Performance 
       Timeline  
Intel 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.
Impact Shares YWCA 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Impact Shares YWCA are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating primary indicators, Impact Shares may actually be approaching a critical reversion point that can send shares even higher in December 2024.

Intel and Impact Shares Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intel and Impact Shares

The main advantage of trading using opposite Intel and Impact Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Impact Shares 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 Impact Shares will offset losses from the drop in Impact Shares' long position.
The idea behind Intel and Impact Shares YWCA 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

Other Complementary Tools

AI Portfolio Architect
Use AI to generate optimal portfolios and find profitable investment opportunities
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
ETF Categories
List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments
Equity Valuation
Check real value of public entities based on technical and fundamental data