Correlation Between AURUBIS AG and Intel

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

By analyzing existing cross correlation between AURUBIS AG UNSPADR and Intel, you can compare the effects of market volatilities on AURUBIS AG 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 AURUBIS AG with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of AURUBIS AG and Intel.

Diversification Opportunities for AURUBIS AG and Intel

0.32

Correlation Coefficient

AURUBIS AG  Intel

Weak diversification

The 3 months correlation between AURUBIS and Intel is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding AURUBIS AG UNSPADR and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and AURUBIS AG 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 AURUBIS AG UNSPADR 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 AURUBIS AG i.e., AURUBIS AG and Intel go up and down completely randomly.

Pair Corralation between AURUBIS AG and Intel

Assuming the 90 days trading horizon AURUBIS AG UNSPADR is expected to generate 0.81 times more return on investment than Intel. However, AURUBIS AG UNSPADR is 1.23 times less risky than Intel. It trades about 0.02 of its potential returns per unit of risk. Intel is currently generating about -0.22 per unit of risk. If you would invest  3,760  in AURUBIS AG UNSPADR on September 19, 2024 and sell it today you would earn a total of  20.00  from holding AURUBIS AG UNSPADR or generate 0.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	95.65%
Values	Daily Returns

AURUBIS AG UNSPADR  vs.  Intel

AURUBIS AG UNSPADR

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in AURUBIS AG UNSPADR are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AURUBIS AG reported solid returns over the last few months and may actually be approaching a breakup point.

Intel

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with AURUBIS AG and Intel

The main advantage of trading using opposite AURUBIS AG and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AURUBIS AG 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.

The idea behind AURUBIS AG UNSPADR and Intel 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.