Correlation Between Intel and Xinjiang Goldwind
Can any of the company-specific risk be diversified away by investing in both Intel and Xinjiang Goldwind 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 Xinjiang Goldwind into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Xinjiang Goldwind Science, you can compare the effects of market volatilities on Intel and Xinjiang Goldwind 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 Xinjiang Goldwind. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Xinjiang Goldwind.
Diversification Opportunities for Intel and Xinjiang Goldwind
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and Xinjiang is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Xinjiang Goldwind Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Goldwind Science 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 Xinjiang Goldwind. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Goldwind Science has no effect on the direction of Intel i.e., Intel and Xinjiang Goldwind go up and down completely randomly.
Pair Corralation between Intel and Xinjiang Goldwind
Given the investment horizon of 90 days Intel is expected to generate 1.29 times more return on investment than Xinjiang Goldwind. However, Intel is 1.29 times more volatile than Xinjiang Goldwind Science. It trades about 0.2 of its potential returns per unit of risk. Xinjiang Goldwind Science is currently generating about -0.12 per unit of risk. If you would invest 2,029 in Intel on November 27, 2024 and sell it today you would earn a total of 398.00 from holding Intel or generate 19.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. Xinjiang Goldwind Science
Performance |
| Timeline |
| Intel |
| Xinjiang Goldwind Science |
Intel and Xinjiang Goldwind Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and Xinjiang Goldwind
The main advantage of trading using opposite Intel and Xinjiang Goldwind positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Xinjiang Goldwind 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 Xinjiang Goldwind will offset losses from the drop in Xinjiang Goldwind's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| Xinjiang Goldwind vs. Shanghai Electric Group | Xinjiang Goldwind vs. American Superconductor | Xinjiang Goldwind vs. Cummins |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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