Correlation Between Intel and Value Fund

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

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

Diversification Opportunities for Intel and Value Fund

-0.74

Correlation Coefficient

Intel  Value Fund

Pay attention - limited upside

The 3 months correlation between Intel and Value is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Value Fund Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Fund Value 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 Value Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Fund Value has no effect on the direction of Intel i.e., Intel and Value Fund go up and down completely randomly.

Pair Corralation between Intel and Value Fund

Given the investment horizon of 90 days Intel is expected to under-perform the Value Fund. In addition to that, Intel is 3.49 times more volatile than Value Fund Value. It trades about -0.01 of its total potential returns per unit of risk. Value Fund Value is currently generating about 0.06 per unit of volatility. If you would invest  1,700  in Value Fund Value on October 11, 2024 and sell it today you would earn a total of  95.00  from holding Value Fund Value or generate 5.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	25.66%
Values	Daily Returns

Intel  vs.  Value Fund Value

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 weak performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in February 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Value Fund Value

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Value Fund Value has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Value Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and Value Fund

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

The idea behind Intel and Value Fund Value 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.