Correlation Between Intel and JPMF Global

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

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

Diversification Opportunities for Intel and JPMF Global

0.53

Correlation Coefficient

Intel  JPMF Global

Very weak diversification

The 3 months correlation between Intel and JPMF is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intel and JPMF Global Natural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JPMF Global Natural 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 JPMF Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JPMF Global Natural has no effect on the direction of Intel i.e., Intel and JPMF Global go up and down completely randomly.

Pair Corralation between Intel and JPMF Global

Assuming the 90 days trading horizon Intel is expected to under-perform the JPMF Global. In addition to that, Intel is 3.04 times more volatile than JPMF Global Natural. It trades about -0.07 of its total potential returns per unit of risk. JPMF Global Natural is currently generating about -0.18 per unit of volatility. If you would invest  1,341  in JPMF Global Natural on September 22, 2024 and sell it today you would lose (121.00) from holding JPMF Global Natural or give up 9.02% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.45%
Values	Daily Returns

Intel  vs.  JPMF Global Natural

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 uncertain 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.

JPMF Global Natural

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days JPMF Global Natural has generated negative risk-adjusted returns adding no value to fund investors. In spite of rather sound technical and fundamental indicators, JPMF Global is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Intel and JPMF Global

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

The idea behind Intel and JPMF Global Natural 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .