Correlation Between Intel and Westhaven Gold
Can any of the company-specific risk be diversified away by investing in both Intel and Westhaven Gold 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 Westhaven Gold into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Westhaven Gold Corp, you can compare the effects of market volatilities on Intel and Westhaven Gold 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 Westhaven Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Westhaven Gold.
Diversification Opportunities for Intel and Westhaven Gold
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Westhaven is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Westhaven Gold Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westhaven Gold 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 Westhaven Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westhaven Gold Corp has no effect on the direction of Intel i.e., Intel and Westhaven Gold go up and down completely randomly.
Pair Corralation between Intel and Westhaven Gold
Given the investment horizon of 90 days Intel is expected to generate 0.5 times more return on investment than Westhaven Gold. However, Intel is 2.0 times less risky than Westhaven Gold. It trades about -0.01 of its potential returns per unit of risk. Westhaven Gold Corp is currently generating about -0.01 per unit of risk. If you would invest 3,241 in Intel on September 2, 2024 and sell it today you would lose (836.00) from holding Intel or give up 25.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.73% |
| Values | Daily Returns |
Intel vs. Westhaven Gold Corp
Performance |
| Timeline |
| Intel |
| Westhaven Gold Corp |
Intel and Westhaven Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Westhaven Gold
The main advantage of trading using opposite Intel and Westhaven Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Westhaven Gold 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 Westhaven Gold will offset losses from the drop in Westhaven Gold's long position.| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
| Westhaven Gold vs. Precipitate Gold Corp | Westhaven Gold vs. Hummingbird Resources PLC | Westhaven Gold vs. Klondike Gold Corp | Westhaven Gold vs. Exploits Discovery Corp |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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