Correlation Between Intel and IShares Short
Can any of the company-specific risk be diversified away by investing in both Intel and IShares Short 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 IShares Short into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and iShares Short Maturity, you can compare the effects of market volatilities on Intel and IShares Short 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 IShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and IShares Short.
Diversification Opportunities for Intel and IShares Short
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Intel and IShares is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Intel and iShares Short Maturity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Short Maturity 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 IShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Short Maturity has no effect on the direction of Intel i.e., Intel and IShares Short go up and down completely randomly.
Pair Corralation between Intel and IShares Short
Given the investment horizon of 90 days Intel is expected to under-perform the IShares Short. In addition to that, Intel is 20.35 times more volatile than iShares Short Maturity. It trades about -0.33 of its total potential returns per unit of risk. iShares Short Maturity is currently generating about -0.08 per unit of volatility. If you would invest 5,019 in iShares Short Maturity on January 25, 2024 and sell it today you would lose (11.00) from holding iShares Short Maturity or give up 0.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. iShares Short Maturity
Performance |
| Timeline |
| Intel |
| iShares Short Maturity |
Intel and IShares Short Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and IShares Short
The main advantage of trading using opposite Intel and IShares Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, IShares Short 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 IShares Short will offset losses from the drop in IShares Short's long position.| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
| IShares Short vs. iShares ESG 1 5 | IShares Short vs. First Trust Low | IShares Short vs. First Trust Managed | IShares Short vs. First Trust Senior |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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