Correlation Between QuickLogic and Intel

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

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

Diversification Opportunities for QuickLogic and Intel

0.03

Correlation Coefficient

QuickLogic  Intel

Significant diversification

The 3 months correlation between QuickLogic and Intel is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding QuickLogic and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and QuickLogic 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 QuickLogic 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 QuickLogic i.e., QuickLogic and Intel go up and down completely randomly.

Pair Corralation between QuickLogic and Intel

Given the investment horizon of 90 days QuickLogic is expected to generate 1.35 times more return on investment than Intel. However, QuickLogic is 1.35 times more volatile than Intel. It trades about 0.25 of its potential returns per unit of risk. Intel is currently generating about -0.37 per unit of risk. If you would invest  688.00  in QuickLogic on September 19, 2024 and sell it today you would earn a total of  121.00  from holding QuickLogic or generate 17.59% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

QuickLogic  vs.  Intel

QuickLogic

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in QuickLogic are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite quite weak forward indicators, QuickLogic disclosed solid returns over the last few months and may actually be approaching a breakup point.

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 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.

Pair Trading with QuickLogic and Intel

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

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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.