Correlation Between Intel and CNDB Old

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

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

Diversification Opportunities for Intel and CNDB Old

0.0

Correlation Coefficient

Intel  CNDB Old

Pay attention - limited upside

The 3 months correlation between Intel and CNDB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel and CNDB Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CNDB Old 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 CNDB Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CNDB Old has no effect on the direction of Intel i.e., Intel and CNDB Old go up and down completely randomly.

Pair Corralation between Intel and CNDB Old

If you would invest  2,020  in Intel on October 24, 2024 and sell it today you would earn a total of  166.00  from holding Intel or generate 8.22% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.26%
Values	Daily Returns

Intel  vs.  CNDB Old

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 rather sound basic indicators, Intel is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CNDB Old

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days CNDB Old has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental indicators, CNDB Old is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and CNDB Old

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

The idea behind Intel and CNDB Old 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.