Correlation Between Intel and Banco De

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

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

Diversification Opportunities for Intel and Banco De

-0.03

Correlation Coefficient

Intel  Banco De

Good diversification

The 3 months correlation between Intel and Banco is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Banco de Credito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banco de Credito 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 Banco De. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banco de Credito has no effect on the direction of Intel i.e., Intel and Banco De go up and down completely randomly.

Pair Corralation between Intel and Banco De

Assuming the 90 days trading horizon Intel is expected to under-perform the Banco De. In addition to that, Intel is 1.27 times more volatile than Banco de Credito. It trades about -0.05 of its total potential returns per unit of risk. Banco de Credito is currently generating about 0.12 per unit of volatility. If you would invest  398.00  in Banco de Credito on October 12, 2024 and sell it today you would earn a total of  12.00  from holding Banco de Credito or generate 3.02% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	85.0%
Values	Daily Returns

Intel  vs.  Banco de Credito

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. Despite unsteady performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in February 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Banco de Credito

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Banco de Credito are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Banco De exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Banco De

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

The idea behind Intel and Banco de Credito 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.

Check out your portfolio center.

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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.