Correlation Between Intel and FTAC Emerald

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

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

Diversification Opportunities for Intel and FTAC Emerald

-0.68

Correlation Coefficient

Intel  FTAC Emerald

Excellent diversification

The 3 months correlation between Intel and FTAC is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Intel and FTAC Emerald Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAC Emerald Acquisition 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 FTAC Emerald. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAC Emerald Acquisition has no effect on the direction of Intel i.e., Intel and FTAC Emerald go up and down completely randomly.

Pair Corralation between Intel and FTAC Emerald

If you would invest (100.00) in FTAC Emerald Acquisition on September 19, 2024 and sell it today you would earn a total of  100.00  from holding FTAC Emerald Acquisition or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	0.0%
Values	Daily Returns

Intel  vs.  FTAC Emerald Acquisition

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.

FTAC Emerald Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days FTAC Emerald Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable fundamental indicators, FTAC Emerald is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Intel and FTAC Emerald

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

The idea behind Intel and FTAC Emerald Acquisition 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.