Correlation Between Intel and ToughBuilt Industries

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

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

Diversification Opportunities for Intel and ToughBuilt Industries

0.0

Correlation Coefficient

Intel  ToughBuilt Industries

Pay attention - limited upside

The 3 months correlation between Intel and ToughBuilt is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ToughBuilt Industries WT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ToughBuilt Industries 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 ToughBuilt Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ToughBuilt Industries has no effect on the direction of Intel i.e., Intel and ToughBuilt Industries go up and down completely randomly.

Pair Corralation between Intel and ToughBuilt Industries

If you would invest  1,982  in Intel on December 30, 2024 and sell it today you would earn a total of  289.00  from holding Intel or generate 14.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Intel  vs.  ToughBuilt Industries WT

Intel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 5 (%) 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.

ToughBuilt Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days ToughBuilt Industries WT has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, ToughBuilt Industries 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 ToughBuilt Industries

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

The idea behind Intel and ToughBuilt Industries WT 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.