Correlation Between Ross Stores and Intel
Can any of the company-specific risk be diversified away by investing in both Ross Stores 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 Ross Stores and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ross Stores and Intel, you can compare the effects of market volatilities on Ross Stores 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 Ross Stores with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ross Stores and Intel.
Diversification Opportunities for Ross Stores and Intel
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Ross and Intel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Ross Stores and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Ross Stores 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 Ross Stores 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 Ross Stores i.e., Ross Stores and Intel go up and down completely randomly.
Pair Corralation between Ross Stores and Intel
Assuming the 90 days trading horizon Ross Stores is expected to generate 0.88 times more return on investment than Intel. However, Ross Stores is 1.14 times less risky than Intel. It trades about 0.53 of its potential returns per unit of risk. Intel is currently generating about 0.06 per unit of risk. If you would invest 279,764 in Ross Stores on September 2, 2024 and sell it today you would earn a total of 28,736 from holding Ross Stores or generate 10.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 38.1% |
| Values | Daily Returns |
Ross Stores vs. Intel
Performance |
| Timeline |
| Ross Stores |
| Intel |
Ross Stores and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ross Stores and Intel
The main advantage of trading using opposite Ross Stores and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ross Stores 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.| Ross Stores vs. DXC Technology | Ross Stores vs. Southwest Airlines | Ross Stores vs. Grupo Sports World | Ross Stores vs. Lloyds Banking Group |
| Intel vs. DXC Technology | Intel vs. Capital One Financial | Intel vs. Deutsche Bank Aktiengesellschaft | Intel vs. FibraHotel |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |