Correlation Between INTEL CDR and OrganiGram Holdings

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

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

Diversification Opportunities for INTEL CDR and OrganiGram Holdings

-0.65

Correlation Coefficient

INTEL CDR  OrganiGram Holdings

Excellent diversification

The 3 months correlation between INTEL and OrganiGram is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding INTEL CDR and OrganiGram Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OrganiGram Holdings and INTEL CDR 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 INTEL CDR are associated (or correlated) with OrganiGram Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OrganiGram Holdings has no effect on the direction of INTEL CDR i.e., INTEL CDR and OrganiGram Holdings go up and down completely randomly.

Pair Corralation between INTEL CDR and OrganiGram Holdings

Assuming the 90 days trading horizon INTEL CDR is expected to generate 1.0 times more return on investment than OrganiGram Holdings. However, INTEL CDR is 1.0 times more volatile than OrganiGram Holdings. It trades about 0.13 of its potential returns per unit of risk. OrganiGram Holdings is currently generating about -0.07 per unit of risk. If you would invest  1,149  in INTEL CDR on September 4, 2024 and sell it today you would earn a total of  258.00  from holding INTEL CDR or generate 22.45% return on investment over 90 days.

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

INTEL CDR  vs.  OrganiGram Holdings

INTEL CDR

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in INTEL CDR are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather abnormal technical and fundamental indicators, INTEL CDR exhibited solid returns over the last few months and may actually be approaching a breakup point.

OrganiGram Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days OrganiGram Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with INTEL CDR and OrganiGram Holdings

The main advantage of trading using opposite INTEL CDR and OrganiGram Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INTEL CDR position performs unexpectedly, OrganiGram Holdings 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 OrganiGram Holdings will offset losses from the drop in OrganiGram Holdings' long position.

The idea behind INTEL CDR and OrganiGram Holdings 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.