Correlation Between Intel and Harbor Dividend

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

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

Diversification Opportunities for Intel and Harbor Dividend

-0.14

Correlation Coefficient

Intel  Harbor Dividend

Good diversification

The 3 months correlation between Intel and Harbor is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Harbor Dividend Growth in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Harbor Dividend Growth 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 Harbor Dividend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Harbor Dividend Growth has no effect on the direction of Intel i.e., Intel and Harbor Dividend go up and down completely randomly.

Pair Corralation between Intel and Harbor Dividend

Given the investment horizon of 90 days Intel is expected to generate 4.9 times more return on investment than Harbor Dividend. However, Intel is 4.9 times more volatile than Harbor Dividend Growth. It trades about 0.09 of its potential returns per unit of risk. Harbor Dividend Growth is currently generating about -0.08 per unit of risk. If you would invest  2,044  in Intel on December 25, 2024 and sell it today you would earn a total of  378.00  from holding Intel or generate 18.49% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intel  vs.  Harbor Dividend Growth

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 weak basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Harbor Dividend Growth

Risk-Adjusted Performance

Very Weak

Over the last 90 days Harbor Dividend Growth has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable forward indicators, Harbor Dividend 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 Harbor Dividend

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

The idea behind Intel and Harbor Dividend Growth 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..