Correlation Between 191216DP2 and Intel
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By analyzing existing cross correlation between COCA COLA CO and Intel, you can compare the effects of market volatilities on 191216DP2 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 191216DP2 with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of 191216DP2 and Intel.
Diversification Opportunities for 191216DP2 and Intel
Excellent diversification
The 3 months correlation between 191216DP2 and Intel is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding COCA COLA CO and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and 191216DP2 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 COCA COLA CO 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 191216DP2 i.e., 191216DP2 and Intel go up and down completely randomly.
Pair Corralation between 191216DP2 and Intel
Assuming the 90 days trading horizon COCA COLA CO is expected to under-perform the Intel. But the bond apears to be less risky and, when comparing its historical volatility, COCA COLA CO is 5.66 times less risky than Intel. The bond trades about -0.1 of its potential returns per unit of risk. The Intel is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 2,152 in Intel on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Intel or generate 11.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COCA COLA CO vs. Intel
Performance |
| Timeline |
| COCA A CO |
| Intel |
191216DP2 and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 191216DP2 and Intel
The main advantage of trading using opposite 191216DP2 and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 191216DP2 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.| 191216DP2 vs. AEP TEX INC | 191216DP2 vs. US BANK NATIONAL | 191216DP2 vs. Bank of America | 191216DP2 vs. GE Aerospace |
| Intel vs. NXP Semiconductors NV | Intel vs. GSI Technology | Intel vs. MaxLinear | Intel vs. Texas Instruments Incorporated |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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