Correlation Between Intel and Blue World

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

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

Diversification Opportunities for Intel and Blue World

-0.44

Correlation Coefficient

Intel  Blue World

Very good diversification

The 3 months correlation between Intel and Blue is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Blue World Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue World Acquisition and Intel 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 are associated (or correlated) with Blue World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue World Acquisition has no effect on the direction of Intel i.e., Intel and Blue World go up and down completely randomly.

Pair Corralation between Intel and Blue World

If you would invest  1,940  in Intel on September 5, 2024 and sell it today you would earn a total of  256.00  from holding Intel or generate 13.2% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.56%
Values	Daily Returns

Intel  vs.  Blue World Acquisition

Intel

Risk-Adjusted Performance

6 of 100

OK

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 rather inconsistent basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Blue World Acquisition

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Blue World Acquisition has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Blue World is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intel and Blue World

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

The idea behind Intel and Blue World Acquisition 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.