Correlation Between Intel and Thunder Bridge

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

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

Diversification Opportunities for Intel and Thunder Bridge

-0.59

Correlation Coefficient

Intel  Thunder Bridge

Excellent diversification

The 3 months correlation between Intel and Thunder is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Thunder Bridge Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thunder Bridge Capital 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 Thunder Bridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thunder Bridge Capital has no effect on the direction of Intel i.e., Intel and Thunder Bridge go up and down completely randomly.

Pair Corralation between Intel and Thunder Bridge

Given the investment horizon of 90 days Intel is expected to generate 0.57 times more return on investment than Thunder Bridge. However, Intel is 1.74 times less risky than Thunder Bridge. It trades about -0.05 of its potential returns per unit of risk. Thunder Bridge Capital is currently generating about -0.05 per unit of risk. If you would invest  2,259  in Intel on October 4, 2024 and sell it today you would lose (237.00) from holding Intel or give up 10.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	77.78%
Values	Daily Returns

Intel  vs.  Thunder Bridge Capital

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Thunder Bridge Capital

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Thunder Bridge Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Intel and Thunder Bridge

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

The idea behind Intel and Thunder Bridge Capital 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..