Correlation Between SinterCast and Intel
Can any of the company-specific risk be diversified away by investing in both SinterCast 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 SinterCast and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SinterCast AB and Intel, you can compare the effects of market volatilities on SinterCast 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 SinterCast with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of SinterCast and Intel.
Diversification Opportunities for SinterCast and Intel
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between SinterCast and Intel is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding SinterCast AB and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and SinterCast 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 SinterCast AB 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 SinterCast i.e., SinterCast and Intel go up and down completely randomly.
Pair Corralation between SinterCast and Intel
Assuming the 90 days trading horizon SinterCast AB is expected to generate 0.49 times more return on investment than Intel. However, SinterCast AB is 2.04 times less risky than Intel. It trades about 0.06 of its potential returns per unit of risk. Intel is currently generating about -0.28 per unit of risk. If you would invest 10,100 in SinterCast AB on January 19, 2024 and sell it today you would earn a total of 150.00 from holding SinterCast AB or generate 1.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
SinterCast AB vs. Intel
Performance |
| Timeline |
| SinterCast AB |
| Intel |
SinterCast and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SinterCast and Intel
The main advantage of trading using opposite SinterCast and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SinterCast 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.| SinterCast vs. Online Brands Nordic | SinterCast vs. Clean Motion AB | SinterCast vs. Nilsson Special Vehicles |
| 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.
Other Complementary Tools
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |