Correlation Between First Quantum and Intel
Can any of the company-specific risk be diversified away by investing in both First Quantum and Intel 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 First Quantum and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First Quantum Minerals and Intel, you can compare the effects of market volatilities on First Quantum and Intel 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 First Quantum with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of First Quantum and Intel.
Diversification Opportunities for First Quantum and Intel
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between First and Intel is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding First Quantum Minerals and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and First Quantum 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 First Quantum Minerals are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of First Quantum i.e., First Quantum and Intel go up and down completely randomly.
Pair Corralation between First Quantum and Intel
Assuming the 90 days horizon First Quantum is expected to generate 1.08 times less return on investment than Intel. But when comparing it to its historical volatility, First Quantum Minerals is 1.09 times less risky than Intel. It trades about 0.08 of its potential returns per unit of risk. Intel is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,933 in Intel on December 27, 2024 and sell it today you would earn a total of 321.00 from holding Intel or generate 16.61% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 98.41% |
Values | Daily Returns |
First Quantum Minerals vs. Intel
Performance |
Timeline |
First Quantum Minerals |
Intel |
First Quantum and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with First Quantum and Intel
The main advantage of trading using opposite First Quantum and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First Quantum position performs unexpectedly, Intel 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 Intel will offset losses from the drop in Intel's long position.First Quantum vs. MOLSON RS BEVERAGE | First Quantum vs. Tyson Foods | First Quantum vs. Monster Beverage Corp | First Quantum vs. Collins Foods Limited |
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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