Correlation Between Intel and ExcelFin Acquisition

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

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

Diversification Opportunities for Intel and ExcelFin Acquisition

-0.54

Correlation Coefficient

Intel  ExcelFin Acquisition

Excellent diversification

The 3 months correlation between Intel and ExcelFin is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ExcelFin Acquisition Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ExcelFin Acquisition Corp 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 ExcelFin Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExcelFin Acquisition Corp has no effect on the direction of Intel i.e., Intel and ExcelFin Acquisition go up and down completely randomly.

Pair Corralation between Intel and ExcelFin Acquisition

Given the investment horizon of 90 days Intel is expected to under-perform the ExcelFin Acquisition. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 18.09 times less risky than ExcelFin Acquisition. The stock trades about 0.0 of its potential returns per unit of risk. The ExcelFin Acquisition Corp is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  3.50  in ExcelFin Acquisition Corp on September 16, 2024 and sell it today you would earn a total of  3.50  from holding ExcelFin Acquisition Corp or generate 100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	13.85%
Values	Daily Returns

Intel  vs.  ExcelFin Acquisition Corp

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

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

ExcelFin Acquisition Corp

Risk-Adjusted Performance

0 of 100

Strong

Over the last 90 days ExcelFin Acquisition Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly abnormal basic indicators, ExcelFin Acquisition showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and ExcelFin Acquisition

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

The idea behind Intel and ExcelFin Acquisition Corp 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.