Correlation Between Intel and Rimac Seguros

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

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

Diversification Opportunities for Intel and Rimac Seguros

-0.14

Correlation Coefficient

Intel  Rimac Seguros

Good diversification

The 3 months correlation between Intel and Rimac is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Rimac Seguros y in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rimac Seguros y 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 Rimac Seguros. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rimac Seguros y has no effect on the direction of Intel i.e., Intel and Rimac Seguros go up and down completely randomly.

Pair Corralation between Intel and Rimac Seguros

Assuming the 90 days trading horizon Intel is expected to under-perform the Rimac Seguros. In addition to that, Intel is 2.46 times more volatile than Rimac Seguros y. It trades about -0.03 of its total potential returns per unit of risk. Rimac Seguros y is currently generating about 0.12 per unit of volatility. If you would invest  92.00  in Rimac Seguros y on October 26, 2024 and sell it today you would earn a total of  4.00  from holding Rimac Seguros y or generate 4.35% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	57.78%
Values	Daily Returns

Intel  vs.  Rimac Seguros y

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 fairly strong forward indicators, Intel is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Rimac Seguros y

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days Rimac Seguros y has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather weak technical and fundamental indicators, Rimac Seguros may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Intel and Rimac Seguros

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

The idea behind Intel and Rimac Seguros y 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.