Correlation Between Alandsbanken Abp and Intel
Can any of the company-specific risk be diversified away by investing in both Alandsbanken Abp 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 Alandsbanken Abp and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alandsbanken Abp A and Intel, you can compare the effects of market volatilities on Alandsbanken Abp 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 Alandsbanken Abp with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alandsbanken Abp and Intel.
Diversification Opportunities for Alandsbanken Abp and Intel
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Alandsbanken and Intel is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Alandsbanken Abp A and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Alandsbanken Abp 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 Alandsbanken Abp A 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 Alandsbanken Abp i.e., Alandsbanken Abp and Intel go up and down completely randomly.
Pair Corralation between Alandsbanken Abp and Intel
Assuming the 90 days trading horizon Alandsbanken Abp A is expected to generate 0.74 times more return on investment than Intel. However, Alandsbanken Abp A is 1.34 times less risky than Intel. It trades about 0.04 of its potential returns per unit of risk. Intel is currently generating about 0.0 per unit of risk. If you would invest 2,725 in Alandsbanken Abp A on January 26, 2024 and sell it today you would earn a total of 765.00 from holding Alandsbanken Abp A or generate 28.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
Alandsbanken Abp A vs. Intel
Performance |
| Timeline |
| Alandsbanken Abp A |
| Intel |
Alandsbanken Abp and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alandsbanken Abp and Intel
The main advantage of trading using opposite Alandsbanken Abp and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alandsbanken Abp 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.| Alandsbanken Abp vs. Alandsbanken Abp B | Alandsbanken Abp vs. CapMan Oyj B | Alandsbanken Abp vs. Tokmanni Group Oyj | Alandsbanken Abp vs. Oma Saastopankki Oyj |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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