Correlation Between VERBUND AG and Intel
Can any of the company-specific risk be diversified away by investing in both VERBUND AG 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 VERBUND AG and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between VERBUND AG ADR and Intel, you can compare the effects of market volatilities on VERBUND AG 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 VERBUND AG with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of VERBUND AG and Intel.
Diversification Opportunities for VERBUND AG and Intel
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between VERBUND and Intel is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding VERBUND AG ADR and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and VERBUND AG 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 VERBUND AG ADR 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 VERBUND AG i.e., VERBUND AG and Intel go up and down completely randomly.
Pair Corralation between VERBUND AG and Intel
Assuming the 90 days horizon VERBUND AG ADR is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, VERBUND AG ADR is 1.93 times less risky than Intel. The stock trades about -0.05 of its potential returns per unit of risk. The Intel is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,081 in Intel on August 31, 2024 and sell it today you would earn a total of 152.00 from holding Intel or generate 7.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VERBUND AG ADR vs. Intel
Performance |
| Timeline |
| VERBUND AG ADR |
| Intel |
VERBUND AG and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VERBUND AG and Intel
The main advantage of trading using opposite VERBUND AG and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VERBUND AG 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.| VERBUND AG vs. Air Transport Services | VERBUND AG vs. TYSON FOODS A | VERBUND AG vs. NIPPON MEAT PACKERS | VERBUND AG vs. JJ SNACK FOODS |
| Intel vs. BE Semiconductor Industries | Intel vs. PKSHA TECHNOLOGY INC | Intel vs. Check Point Software | Intel vs. X Fab Silicon |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |