Correlation Between Mercedes-Benz Group and Intel
Can any of the company-specific risk be diversified away by investing in both Mercedes-Benz Group and Intel 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 Mercedes-Benz Group and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercedes Benz Group AG and Intel, you can compare the effects of market volatilities on Mercedes-Benz Group and Intel 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 Mercedes-Benz Group with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercedes-Benz Group and Intel.
Diversification Opportunities for Mercedes-Benz Group and Intel
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mercedes-Benz and Intel is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Mercedes Benz Group AG and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Mercedes-Benz Group 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 Mercedes Benz Group AG are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of Mercedes-Benz Group i.e., Mercedes-Benz Group and Intel go up and down completely randomly.
Pair Corralation between Mercedes-Benz Group and Intel
Assuming the 90 days horizon Mercedes Benz Group AG is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, Mercedes Benz Group AG is 2.67 times less risky than Intel. The stock trades about -0.12 of its potential returns per unit of risk. The Intel is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 2,754 in Intel on September 1, 2024 and sell it today you would lose (502.00) from holding Intel or give up 18.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercedes Benz Group AG vs. Intel
Performance |
| Timeline |
| Mercedes Benz Group |
| Intel |
Mercedes-Benz Group and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercedes-Benz Group and Intel
The main advantage of trading using opposite Mercedes-Benz Group and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercedes-Benz Group position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.| Mercedes-Benz Group vs. OAKTRSPECLENDNEW | Mercedes-Benz Group vs. TRAVEL LEISURE DL 01 | Mercedes-Benz Group vs. PLAYSTUDIOS A DL 0001 | Mercedes-Benz Group vs. Ameriprise Financial |
| Intel vs. PARKEN Sport Entertainment | Intel vs. ARDAGH METAL PACDL 0001 | Intel vs. Columbia Sportswear | Intel vs. POWER METALS |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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