Correlation Between Intel and Troika Media

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

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

Diversification Opportunities for Intel and Troika Media

0.0

Correlation Coefficient

Intel  Troika Media

Pay attention - limited upside

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

Pair Corralation between Intel and Troika Media

If you would invest  2,393  in Intel on December 1, 2024 and sell it today you would lose (20.00) from holding Intel or give up 0.84% of portfolio value over 90 days.

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

Intel  vs.  Troika Media Group

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 1 (%) 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.

Troika Media Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Troika Media Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Troika Media is not utilizing all of its potentials. The current stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Intel and Troika Media

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

The idea behind Intel and Troika Media Group 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.

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.