Correlation Between Genworth Financial and Intel

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

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

Diversification Opportunities for Genworth Financial and Intel

0.0

Correlation Coefficient

Genworth Financial  Intel

Pay attention - limited upside

The 3 months correlation between Genworth and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Genworth Financial and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Genworth Financial 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 Genworth Financial 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 Genworth Financial i.e., Genworth Financial and Intel go up and down completely randomly.

Pair Corralation between Genworth Financial and Intel

If you would invest  39,592  in Intel on December 4, 2024 and sell it today you would earn a total of  7,153  from holding Intel or generate 18.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Genworth Financial  vs.  Intel

Genworth Financial

Risk-Adjusted Performance

Very Weak

Over the last 90 days Genworth Financial has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Genworth Financial is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Genworth Financial and Intel

The main advantage of trading using opposite Genworth Financial and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Genworth Financial 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 Genworth Financial 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.