Correlation Between Intel and Everbridge

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

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

Diversification Opportunities for Intel and Everbridge

0.11

Correlation Coefficient

Intel  Everbridge

Average diversification

The 3 months correlation between Intel and Everbridge is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Everbridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everbridge 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 Everbridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everbridge has no effect on the direction of Intel i.e., Intel and Everbridge go up and down completely randomly.

Pair Corralation between Intel and Everbridge

Given the investment horizon of 90 days Intel is expected to under-perform the Everbridge. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.08 times less risky than Everbridge. The stock trades about -0.01 of its potential returns per unit of risk. The Everbridge is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  2,897  in Everbridge on October 7, 2024 and sell it today you would earn a total of  603.00  from holding Everbridge or generate 20.81% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	73.99%
Values	Daily Returns

Intel  vs.  Everbridge

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.

Everbridge

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Everbridge has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental drivers, Everbridge is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Intel and Everbridge

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

The idea behind Intel and Everbridge 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..