Correlation Between VIRGIN WINES and Intel

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

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

Diversification Opportunities for VIRGIN WINES and Intel

0.0

Correlation Coefficient

VIRGIN WINES  Intel

Pay attention - limited upside

The 3 months correlation between VIRGIN and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding VIRGIN WINES UK and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and VIRGIN WINES 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 VIRGIN WINES UK 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 VIRGIN WINES i.e., VIRGIN WINES and Intel go up and down completely randomly.

Pair Corralation between VIRGIN WINES and Intel

If you would invest  1,932  in Intel on September 17, 2024 and sell it today you would earn a total of  63.00  from holding Intel or generate 3.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

VIRGIN WINES UK  vs.  Intel

VIRGIN WINES UK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days VIRGIN WINES UK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, VIRGIN WINES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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 fragile essential indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Pair Trading with VIRGIN WINES and Intel

The main advantage of trading using opposite VIRGIN WINES and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VIRGIN WINES 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 VIRGIN WINES UK 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.