Correlation Between Intel and Reliq Health

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

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

Diversification Opportunities for Intel and Reliq Health

-0.46

Correlation Coefficient

Intel  Reliq Health

Very good diversification

The 3 months correlation between Intel and Reliq is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Reliq Health Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Reliq Health Technologies 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 Reliq Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Reliq Health Technologies has no effect on the direction of Intel i.e., Intel and Reliq Health go up and down completely randomly.

Pair Corralation between Intel and Reliq Health

Given the investment horizon of 90 days Intel is expected to generate 245.77 times less return on investment than Reliq Health. But when comparing it to its historical volatility, Intel is 47.13 times less risky than Reliq Health. It trades about 0.03 of its potential returns per unit of risk. Reliq Health Technologies is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  4.00  in Reliq Health Technologies on September 11, 2024 and sell it today you would lose (3.99) from holding Reliq Health Technologies or give up 99.75% of portfolio value over 90 days.

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

Intel  vs.  Reliq Health Technologies

Intel

Risk-Adjusted Performance

2 of 100

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 sound basic indicators, Intel is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Reliq Health Technologies

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Reliq Health Technologies are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Reliq Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Reliq Health

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

The idea behind Intel and Reliq Health Technologies 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.