Correlation Between SCIENCE IN and Intel

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

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

Diversification Opportunities for SCIENCE IN and Intel

0.68

Correlation Coefficient

SCIENCE IN  Intel

Poor diversification

The 3 months correlation between SCIENCE and Intel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding SCIENCE IN SPORT and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and SCIENCE IN 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 SCIENCE IN SPORT 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 SCIENCE IN i.e., SCIENCE IN and Intel go up and down completely randomly.

Pair Corralation between SCIENCE IN and Intel

Assuming the 90 days horizon SCIENCE IN is expected to generate 1.37 times less return on investment than Intel. But when comparing it to its historical volatility, SCIENCE IN SPORT is 1.56 times less risky than Intel. It trades about 0.09 of its potential returns per unit of risk. Intel is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,977  in Intel on September 3, 2024 and sell it today you would earn a total of  275.00  from holding Intel or generate 13.91% return on investment over 90 days.

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

SCIENCE IN SPORT  vs.  Intel

SCIENCE IN SPORT

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in SCIENCE IN SPORT are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, SCIENCE IN may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Intel

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile essential indicators, Intel unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SCIENCE IN and Intel

The main advantage of trading using opposite SCIENCE IN and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SCIENCE IN 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 SCIENCE IN SPORT 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.