Correlation Between Option Care and Intel
Can any of the company-specific risk be diversified away by investing in both Option Care 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 Option Care and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Option Care Health and Intel, you can compare the effects of market volatilities on Option Care 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 Option Care with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Option Care and Intel.
Diversification Opportunities for Option Care and Intel
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Option and Intel is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Option Care Health and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Option Care 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 Option Care Health 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 Option Care i.e., Option Care and Intel go up and down completely randomly.
Pair Corralation between Option Care and Intel
Assuming the 90 days trading horizon Option Care Health is expected to under-perform the Intel. In addition to that, Option Care is 1.35 times more volatile than Intel. It trades about -0.1 of its total potential returns per unit of risk. Intel is currently generating about 0.06 per unit of volatility. If you would invest 2,143 in Intel on August 30, 2024 and sell it today you would earn a total of 128.00 from holding Intel or generate 5.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Option Care Health vs. Intel
Performance |
| Timeline |
| Option Care Health |
| Intel |
Option Care and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Option Care and Intel
The main advantage of trading using opposite Option Care and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Option Care 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.| Option Care vs. CarsalesCom | Option Care vs. PACIFIC ONLINE | Option Care vs. Silicon Motion Technology | Option Care vs. NISSAN CHEMICAL IND |
| Intel vs. Apple Inc | Intel vs. Apple Inc | Intel vs. Superior Plus Corp | Intel vs. SIVERS SEMICONDUCTORS AB |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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