Correlation Between ALIOR BANK and Intel

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

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

Diversification Opportunities for ALIOR BANK and Intel

-0.14

Correlation Coefficient

ALIOR BANK  Intel

Good diversification

The 3 months correlation between ALIOR and Intel is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding ALIOR BANK and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and ALIOR BANK 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 ALIOR BANK 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 ALIOR BANK i.e., ALIOR BANK and Intel go up and down completely randomly.

Pair Corralation between ALIOR BANK and Intel

Assuming the 90 days trading horizon ALIOR BANK is expected to under-perform the Intel. But the stock apears to be less risky and, when comparing its historical volatility, ALIOR BANK is 1.38 times less risky than Intel. The stock trades about -0.02 of its potential returns per unit of risk. The Intel is currently generating about 0.03 of returns per unit of risk over similar time horizon. 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	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ALIOR BANK  vs.  Intel

ALIOR BANK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ALIOR BANK has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ALIOR BANK is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

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 ALIOR BANK and Intel

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

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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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..