Correlation Between Intel and Swedbank Robur

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

By analyzing existing cross correlation between Intel and Swedbank Robur Corporate, you can compare the effects of market volatilities on Intel and Swedbank Robur 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 Swedbank Robur. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Swedbank Robur.

Diversification Opportunities for Intel and Swedbank Robur

-0.17

Correlation Coefficient

Intel  Swedbank Robur

Good diversification

The 3 months correlation between Intel and Swedbank is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Swedbank Robur Corporate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swedbank Robur Corporate 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 Swedbank Robur. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swedbank Robur Corporate has no effect on the direction of Intel i.e., Intel and Swedbank Robur go up and down completely randomly.

Pair Corralation between Intel and Swedbank Robur

Assuming the 90 days trading horizon Intel is expected to under-perform the Swedbank Robur. In addition to that, Intel is 19.87 times more volatile than Swedbank Robur Corporate. It trades about -0.28 of its total potential returns per unit of risk. Swedbank Robur Corporate is currently generating about 0.21 per unit of volatility. If you would invest  971.00  in Swedbank Robur Corporate on September 22, 2024 and sell it today you would earn a total of  8.00  from holding Swedbank Robur Corporate or generate 0.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.65%
Values	Daily Returns

Intel  vs.  Swedbank Robur Corporate

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 latest weak performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Swedbank Robur Corporate

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Swedbank Robur Corporate are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of very healthy basic indicators, Swedbank Robur is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Intel and Swedbank Robur

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

The idea behind Intel and Swedbank Robur Corporate 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.