Intel Stock Volatility

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Intel Market Sensitivity And Downside Risk

3 Months Beta |Analyze Intel Demand TrendCheck current 90 days Intel correlation with market (Dow Jones Industrial)

Intel Beta

2.23

Standard Deviation

2.94

Using Intel Put Option to Manage Risk

Intel's PUT expiring on 2024-11-29

Intel Stock Volatility Analysis

Intel Projected Return Density Against Market

Given the investment horizon of 90 days the stock has the beta coefficient of 2.2254 . This usually indicates as the benchmark fluctuates upward, the company is expected to outperform it on average. However, if the benchmark returns are projected to be negative, Intel will likely underperform. Intel has an alpha of 0.0394, implying that it can generate a 0.0394 percent excess return over Dow Jones Industrial after adjusting for the inherited market risk (beta). Intel's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how intel stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives an Intel Price Volatility?

Several factors can influence a stock's market volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Intel Stock Risk Measures

Intel Stock Return Volatility

Intel historical daily return volatility represents how much of Intel stock's daily returns swing around its mean - it is a statistical measure of its dispersion of returns. The firm inherits 2.9448% risk (volatility on return distribution) over the 90 days horizon. By contrast, Dow Jones Industrial accepts 0.7777% volatility on return distribution over the 90 days horizon.

Volatility is a rate at which the price of Intel or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Intel may increase or decrease. In other words, similar to Intel's beta indicator, it measures the risk of Intel and helps estimate the fluctuations that may happen in a short period of time. So if prices of Intel fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.

Intel's stock volatility refers to the amount of uncertainty or risk involved with the size of changes in its stock's price. It is a statistical measure of the dispersion of returns on Intel Stock over a specified period of time, often expressed as the standard deviation of daily returns. In other words, it measures how much Intel's price varies over time.

The analysis of Intel's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Intel's investment and either accepting that risk or mitigating it. Along with some common measures of Intel stock's risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.

Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stocks, we recommend comparing similar stocks with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.

The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Intel as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Intel's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Intel's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Intel.

When running Intel's price analysis, check to measure Intel's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Intel is operating at the current time. Most of Intel's value examination focuses on studying past and present price action to predict the probability of Intel's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Intel's price. Additionally, you may evaluate how the addition of Intel to your portfolios can decrease your overall portfolio volatility.