Correlation Between Intel and Fidelity Growth

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

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

Diversification Opportunities for Intel and Fidelity Growth

0.0

Correlation Coefficient

Intel  Fidelity Growth

Pay attention - limited upside

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

Pair Corralation between Intel and Fidelity Growth

If you would invest  1,938  in Intel on December 5, 2024 and sell it today you would earn a total of  195.00  from holding Intel or generate 10.06% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intel  vs.  Fidelity Growth Opportunities

Intel

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Fidelity Growth Oppo

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fidelity Growth Opportunities has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Fidelity Growth is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Intel and Fidelity Growth

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

The idea behind Intel and Fidelity Growth Opportunities 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.

Check out your portfolio center.

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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.