Correlation Between Intel and Cobas Global

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

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

Diversification Opportunities for Intel and Cobas Global

-0.63

Correlation Coefficient

Intel  Cobas Global

Excellent diversification

The 3 months correlation between Intel and Cobas is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Cobas Global PP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cobas Global PP and Intel 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 Intel are associated (or correlated) with Cobas Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cobas Global PP has no effect on the direction of Intel i.e., Intel and Cobas Global go up and down completely randomly.

Pair Corralation between Intel and Cobas Global

Assuming the 90 days trading horizon Intel is expected to under-perform the Cobas Global. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 21.58 times less risky than Cobas Global. The stock trades about 0.0 of its potential returns per unit of risk. The Cobas Global PP is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  9,247  in Cobas Global PP on September 26, 2024 and sell it today you would earn a total of  2,976  from holding Cobas Global PP or generate 32.18% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	99.61%
Values	Daily Returns

Intel  vs.  Cobas Global PP

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. In spite of comparatively stable essential indicators, Intel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Cobas Global PP

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Cobas Global PP are ranked lower than 2 (%) of all funds and portfolios of funds over the last 90 days. Despite somewhat strong basic indicators, Cobas Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and Cobas Global

The main advantage of trading using opposite Intel and Cobas Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Cobas Global 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 Cobas Global will offset losses from the drop in Cobas Global's long position.

The idea behind Intel and Cobas Global PP 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.