Correlation Between Intel and Koios Beverage

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

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

Diversification Opportunities for Intel and Koios Beverage

0.05

Correlation Coefficient

Intel  Koios Beverage

Significant diversification

The 3 months correlation between Intel and Koios is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Koios Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koios Beverage Corp 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 Koios Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koios Beverage Corp has no effect on the direction of Intel i.e., Intel and Koios Beverage go up and down completely randomly.

Pair Corralation between Intel and Koios Beverage

Given the investment horizon of 90 days Intel is expected to generate 103.17 times less return on investment than Koios Beverage. But when comparing it to its historical volatility, Intel is 44.67 times less risky than Koios Beverage. It trades about 0.09 of its potential returns per unit of risk. Koios Beverage Corp is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest  1.40  in Koios Beverage Corp on December 28, 2024 and sell it today you would earn a total of  21.60  from holding Koios Beverage Corp or generate 1542.86% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	96.77%
Values	Daily Returns

Intel  vs.  Koios Beverage Corp

Intel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Koios Beverage Corp

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Koios Beverage Corp are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Koios Beverage reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Koios Beverage

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

The idea behind Intel and Koios Beverage Corp 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.