Correlation Between Intel and Keweenaw Land

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

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

Diversification Opportunities for Intel and Keweenaw Land

-0.38

Correlation Coefficient

Intel  Keweenaw Land

Very good diversification

The 3 months correlation between Intel and Keweenaw is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Keweenaw Land Association in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Keweenaw Land Association 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 Keweenaw Land. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Keweenaw Land Association has no effect on the direction of Intel i.e., Intel and Keweenaw Land go up and down completely randomly.

Pair Corralation between Intel and Keweenaw Land

Given the investment horizon of 90 days Intel is expected to generate 1.32 times more return on investment than Keweenaw Land. However, Intel is 1.32 times more volatile than Keweenaw Land Association. It trades about 0.09 of its potential returns per unit of risk. Keweenaw Land Association is currently generating about 0.02 per unit of risk. If you would invest  1,982  in Intel on December 29, 2024 and sell it today you would earn a total of  380.00  from holding Intel or generate 19.17% return on investment over 90 days.

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

Intel  vs.  Keweenaw Land Association

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.

Keweenaw Land Association

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Keweenaw Land Association are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, Keweenaw Land is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with Intel and Keweenaw Land

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

The idea behind Intel and Keweenaw Land Association 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.