Correlation Between Intel and Data Modul

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

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

Diversification Opportunities for Intel and Data Modul

0.52

Correlation Coefficient

Intel  Data Modul

Very weak diversification

The 3 months correlation between Intel and Data is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Data Modul AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Data Modul AG 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 Data Modul. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Data Modul AG has no effect on the direction of Intel i.e., Intel and Data Modul go up and down completely randomly.

Pair Corralation between Intel and Data Modul

Assuming the 90 days trading horizon Intel is expected to generate 1.54 times more return on investment than Data Modul. However, Intel is 1.54 times more volatile than Data Modul AG. It trades about 0.03 of its potential returns per unit of risk. Data Modul AG is currently generating about -0.07 per unit of risk. If you would invest  2,049  in Intel on October 24, 2024 and sell it today you would earn a total of  48.00  from holding Intel or generate 2.34% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Intel  vs.  Data Modul AG

Intel

Risk-Adjusted Performance

2 of 100

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 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.

Data Modul AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Data Modul AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's primary indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Intel and Data Modul

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

The idea behind Intel and Data Modul AG 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.