Correlation Between Lumen Technologies and Intel
Can any of the company-specific risk be diversified away by investing in both Lumen Technologies 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 Lumen Technologies and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lumen Technologies and Intel, you can compare the effects of market volatilities on Lumen Technologies 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 Lumen Technologies with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lumen Technologies and Intel.
Diversification Opportunities for Lumen Technologies and Intel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Lumen and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Lumen Technologies and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Lumen Technologies 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 Lumen Technologies 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 Lumen Technologies i.e., Lumen Technologies and Intel go up and down completely randomly.
Pair Corralation between Lumen Technologies and Intel
If you would invest (100.00) in Lumen Technologies on January 20, 2024 and sell it today you would earn a total of 100.00 from holding Lumen Technologies or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Lumen Technologies vs. Intel
Performance |
| Timeline |
| Lumen Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intel |
Lumen Technologies and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lumen Technologies and Intel
The main advantage of trading using opposite Lumen Technologies and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lumen Technologies 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.| Lumen Technologies vs. Premium Beverage Group | Lumen Technologies vs. Keurig Dr Pepper | Lumen Technologies vs. Sports Pouch Beverage | Lumen Technologies vs. Thai Beverage PCL |
| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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