Correlation Between Intel and Qinetiq Group

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

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

Diversification Opportunities for Intel and Qinetiq Group

0.06

Correlation Coefficient

Intel  Qinetiq Group

Significant diversification

The 3 months correlation between Intel and Qinetiq is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Qinetiq Group PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qinetiq Group PLC 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 Qinetiq Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qinetiq Group PLC has no effect on the direction of Intel i.e., Intel and Qinetiq Group go up and down completely randomly.

Pair Corralation between Intel and Qinetiq Group

Given the investment horizon of 90 days Intel is expected to generate 0.92 times more return on investment than Qinetiq Group. However, Intel is 1.09 times less risky than Qinetiq Group. It trades about 0.09 of its potential returns per unit of risk. Qinetiq Group PLC 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 Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Intel  vs.  Qinetiq Group PLC

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.

Qinetiq Group PLC

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Qinetiq Group PLC are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Qinetiq Group may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Intel and Qinetiq Group

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

The idea behind Intel and Qinetiq Group PLC 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.