Correlation Between Intel and Aperture New

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

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

Diversification Opportunities for Intel and Aperture New

-0.24

Correlation Coefficient

Intel  Aperture New

Very good diversification

The 3 months correlation between Intel and Aperture is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Aperture New World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aperture New World 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 Aperture New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aperture New World has no effect on the direction of Intel i.e., Intel and Aperture New go up and down completely randomly.

Pair Corralation between Intel and Aperture New

Given the investment horizon of 90 days Intel is expected to under-perform the Aperture New. In addition to that, Intel is 12.56 times more volatile than Aperture New World. It trades about -0.01 of its total potential returns per unit of risk. Aperture New World is currently generating about -0.05 per unit of volatility. If you would invest  835.00  in Aperture New World on October 26, 2024 and sell it today you would lose (12.00) from holding Aperture New World or give up 1.44% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	23.48%
Values	Daily Returns

Intel  vs.  Aperture New World

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 unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Aperture New World

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Aperture New World has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Aperture New is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and Aperture New

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

The idea behind Intel and Aperture New World 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.