Correlation Between China New and Intel
Can any of the company-specific risk be diversified away by investing in both China New 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 China New and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China New Borun and Intel, you can compare the effects of market volatilities on China New 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 China New with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of China New and Intel.
Diversification Opportunities for China New and Intel
Pay attention - limited upside
The 3 months correlation between China and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China New Borun and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and China New 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 China New Borun 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 China New i.e., China New and Intel go up and down completely randomly.
Pair Corralation between China New and Intel
If you would invest 2,459 in Intel on January 24, 2024 and sell it today you would earn a total of 969.00 from holding Intel or generate 39.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China New Borun vs. Intel
Performance |
| Timeline |
| China New Borun |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Intel |
China New and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China New and Intel
The main advantage of trading using opposite China New and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China New 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.| China New vs. Park City Group | China New vs. Bill Com Holdings | China New vs. Asure Software | China New vs. VirnetX Holding Corp |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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