Correlation Between OPEN HOUSE and Intel
Can any of the company-specific risk be diversified away by investing in both OPEN HOUSE 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 OPEN HOUSE and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPEN HOUSE GROUP and Intel, you can compare the effects of market volatilities on OPEN HOUSE 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 OPEN HOUSE with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPEN HOUSE and Intel.
Diversification Opportunities for OPEN HOUSE and Intel
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between OPEN and Intel is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding OPEN HOUSE GROUP and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and OPEN HOUSE 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 OPEN HOUSE GROUP 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 OPEN HOUSE i.e., OPEN HOUSE and Intel go up and down completely randomly.
Pair Corralation between OPEN HOUSE and Intel
Assuming the 90 days horizon OPEN HOUSE GROUP is expected to generate 0.62 times more return on investment than Intel. However, OPEN HOUSE GROUP is 1.62 times less risky than Intel. It trades about 0.05 of its potential returns per unit of risk. Intel is currently generating about -0.06 per unit of risk. If you would invest 3,020 in OPEN HOUSE GROUP on September 3, 2024 and sell it today you would earn a total of 460.00 from holding OPEN HOUSE GROUP or generate 15.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
OPEN HOUSE GROUP vs. Intel
Performance |
| Timeline |
| OPEN HOUSE GROUP |
| Intel |
OPEN HOUSE and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OPEN HOUSE and Intel
The main advantage of trading using opposite OPEN HOUSE and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPEN HOUSE 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.| OPEN HOUSE vs. ADRIATIC METALS LS 013355 | OPEN HOUSE vs. MAVEN WIRELESS SWEDEN | OPEN HOUSE vs. Chunghwa Telecom Co | OPEN HOUSE vs. Gamma Communications plc |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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