Correlation Between Intel and Urstadt Biddle

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

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

Diversification Opportunities for Intel and Urstadt Biddle

0.75

Correlation Coefficient

Intel  Urstadt Biddle

Poor diversification

The 3 months correlation between Intel and Urstadt is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Urstadt Biddle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urstadt Biddle 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 Urstadt Biddle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urstadt Biddle has no effect on the direction of Intel i.e., Intel and Urstadt Biddle go up and down completely randomly.

Pair Corralation between Intel and Urstadt Biddle

If you would invest  2,010  in Intel on September 3, 2024 and sell it today you would earn a total of  395.00  from holding Intel or generate 19.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	1.56%
Values	Daily Returns

Intel  vs.  Urstadt Biddle

Intel

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Urstadt Biddle

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Urstadt Biddle has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable fundamental drivers, Urstadt Biddle is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with Intel and Urstadt Biddle

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

The idea behind Intel and Urstadt Biddle 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.