Correlation Between AstraZeneca PLC and Intelsat
Can any of the company-specific risk be diversified away by investing in both AstraZeneca PLC and Intelsat 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 AstraZeneca PLC and Intelsat into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AstraZeneca PLC ADR and Intelsat SA, you can compare the effects of market volatilities on AstraZeneca PLC and Intelsat 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 AstraZeneca PLC with a short position of Intelsat. Check out your portfolio center. Please also check ongoing floating volatility patterns of AstraZeneca PLC and Intelsat.
Diversification Opportunities for AstraZeneca PLC and Intelsat
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AstraZeneca and Intelsat is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AstraZeneca PLC ADR and Intelsat SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intelsat SA and AstraZeneca PLC 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 AstraZeneca PLC ADR are associated (or correlated) with Intelsat. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intelsat SA has no effect on the direction of AstraZeneca PLC i.e., AstraZeneca PLC and Intelsat go up and down completely randomly.
Pair Corralation between AstraZeneca PLC and Intelsat
If you would invest 6,633 in AstraZeneca PLC ADR on January 26, 2024 and sell it today you would earn a total of 487.00 from holding AstraZeneca PLC ADR or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
AstraZeneca PLC ADR vs. Intelsat SA
Performance |
| Timeline |
| AstraZeneca PLC ADR |
| Intelsat SA |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
AstraZeneca PLC and Intelsat Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AstraZeneca PLC and Intelsat
The main advantage of trading using opposite AstraZeneca PLC and Intelsat positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AstraZeneca PLC position performs unexpectedly, Intelsat 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 Intelsat will offset losses from the drop in Intelsat's long position.| AstraZeneca PLC vs. Novartis AG ADR | AstraZeneca PLC vs. GlaxoSmithKline PLC ADR | AstraZeneca PLC vs. Roche Holding Ltd | AstraZeneca PLC vs. Bristol Myers Squibb |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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