Correlation Between Cardano and Intel

Can any of the company-specific risk be diversified away by investing in both Cardano 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 Cardano and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cardano and Intel, you can compare the effects of market volatilities on Cardano 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 Cardano with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cardano and Intel.

Diversification Opportunities for Cardano and Intel

0.01

Correlation Coefficient

Cardano  Intel

Significant diversification

The 3 months correlation between Cardano and Intel is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Cardano and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Cardano 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 Cardano 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 Cardano i.e., Cardano and Intel go up and down completely randomly.

Pair Corralation between Cardano and Intel

Assuming the 90 days trading horizon Cardano is expected to under-perform the Intel. In addition to that, Cardano is 3.89 times more volatile than Intel. It trades about -0.12 of its total potential returns per unit of risk. Intel is currently generating about -0.05 per unit of volatility. If you would invest  2,025  in Intel on October 12, 2024 and sell it today you would lose (35.00) from holding Intel or give up 1.73% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	80.95%
Values	Daily Returns

Cardano  vs.  Intel

Cardano

Risk-Adjusted Performance

18 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Cardano are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Cardano exhibited solid returns over the last few months and may actually be approaching a breakup point.

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Cardano and Intel

The main advantage of trading using opposite Cardano and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cardano 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.

The idea behind Cardano and Intel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Transaction History module to view history of all your transactions and understand their impact on performance.