Correlation Between WESTLAKE CHEMICAL and Intel
Can any of the company-specific risk be diversified away by investing in both WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WESTLAKE CHEMICAL and Intel, you can compare the effects of market volatilities on WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of WESTLAKE CHEMICAL and Intel.
Diversification Opportunities for WESTLAKE CHEMICAL and Intel
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between WESTLAKE and Intel is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding WESTLAKE CHEMICAL and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL 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 WESTLAKE CHEMICAL i.e., WESTLAKE CHEMICAL and Intel go up and down completely randomly.
Pair Corralation between WESTLAKE CHEMICAL and Intel
Assuming the 90 days trading horizon WESTLAKE CHEMICAL is expected to generate 11.56 times less return on investment than Intel. But when comparing it to its historical volatility, WESTLAKE CHEMICAL is 2.15 times less risky than Intel. It trades about 0.04 of its potential returns per unit of risk. Intel is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 2,060 in Intel on September 4, 2024 and sell it today you would earn a total of 359.00 from holding Intel or generate 17.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WESTLAKE CHEMICAL vs. Intel
Performance |
| Timeline |
| WESTLAKE CHEMICAL |
| Intel |
WESTLAKE CHEMICAL and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WESTLAKE CHEMICAL and Intel
The main advantage of trading using opposite WESTLAKE CHEMICAL and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WESTLAKE CHEMICAL 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.| WESTLAKE CHEMICAL vs. Insurance Australia Group | WESTLAKE CHEMICAL vs. SBI Insurance Group | WESTLAKE CHEMICAL vs. Singapore Reinsurance | WESTLAKE CHEMICAL vs. British American Tobacco |
| Intel vs. WESTLAKE CHEMICAL | Intel vs. Vastned Retail NV | Intel vs. Quaker Chemical | Intel vs. SALESFORCE INC CDR |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Global Correlations Find global opportunities by holding instruments from different markets |