Correlation Between Intel and Alpha Copper

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

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

Diversification Opportunities for Intel and Alpha Copper

-0.7

Correlation Coefficient

Intel  Alpha Copper

Excellent diversification

The 3 months correlation between Intel and Alpha is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Alpha Copper Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alpha Copper Corp 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 Alpha Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alpha Copper Corp has no effect on the direction of Intel i.e., Intel and Alpha Copper go up and down completely randomly.

Pair Corralation between Intel and Alpha Copper

Given the investment horizon of 90 days Intel is expected to generate 0.3 times more return on investment than Alpha Copper. However, Intel is 3.39 times less risky than Alpha Copper. It trades about 0.12 of its potential returns per unit of risk. Alpha Copper Corp is currently generating about 0.02 per unit of risk. If you would invest  2,010  in Intel on September 2, 2024 and sell it today you would earn a total of  395.00  from holding Intel or generate 19.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.97%
Values	Daily Returns

Intel  vs.  Alpha Copper Corp

Intel

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Alpha Copper Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alpha Copper Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Alpha Copper may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with Intel and Alpha Copper

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

The idea behind Intel and Alpha Copper Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.