Correlation Between Intel and XPAC Acquisition
Can any of the company-specific risk be diversified away by investing in both Intel and XPAC 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 XPAC Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and XPAC Acquisition Corp, you can compare the effects of market volatilities on Intel and XPAC 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 XPAC Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and XPAC Acquisition.
Diversification Opportunities for Intel and XPAC Acquisition
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intel and XPAC is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intel and XPAC Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XPAC 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 XPAC Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XPAC Acquisition Corp has no effect on the direction of Intel i.e., Intel and XPAC Acquisition go up and down completely randomly.
Pair Corralation between Intel and XPAC Acquisition
Given the investment horizon of 90 days Intel is expected to generate 1097.13 times less return on investment than XPAC Acquisition. But when comparing it to its historical volatility, Intel is 32.73 times less risky than XPAC Acquisition. It trades about 0.0 of its potential returns per unit of risk. XPAC Acquisition Corp is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 4.02 in XPAC Acquisition Corp on September 3, 2024 and sell it today you would earn a total of 2.19 from holding XPAC Acquisition Corp or generate 54.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 23.64% |
| Values | Daily Returns |
Intel vs. XPAC Acquisition Corp
Performance |
| Timeline |
| Intel |
| XPAC Acquisition Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intel and XPAC Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and XPAC Acquisition
The main advantage of trading using opposite Intel and XPAC Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, XPAC 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 XPAC Acquisition will offset losses from the drop in XPAC Acquisition's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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