Correlation Between EMCORE and Intel

By analyzing existing cross correlation between EMCORE and Intel you can compare the effects of market volatilities on EMCORE 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 EMCORE with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMCORE and Intel.

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Can any of the company-specific risk be diversified away by investing in both EMCORE and Intel at the same time? Although using correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combing EMCORE and Intel into the same portfolio which is an essential part of fundamental portfolio management process.

Diversification Opportunities for EMCORE and Intel

0.73
Correlation
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<div class='circular--portrait-small' style='font-weight: 700;background:#006400;color: #FFE4E1;font-size:0.9em;padding-top: 12px;;'>INT</div>

Poor diversification

The 3 months correlation between EMCORE and Intel is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding EMCORE Corp. and Intel Corp. in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Intel and EMCORE 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 EMCORE 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 EMCORE i.e. EMCORE and Intel go up and down completely randomly.

Pair Corralation between EMCORE and Intel

Given the investment horizon of 30 days, EMCORE is expected to generate 1.07 times less return on investment than Intel. In addition to that, EMCORE is 1.3 times more volatile than Intel. It trades about 0.04 of its total potential returns per unit of risk. Intel is currently generating about 0.05 per unit of volatility. If you would invest  5,818  in Intel on April 30, 2020 and sell it today you would earn a total of  475.00  from holding Intel or generate 8.16% return on investment over 30 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

EMCORE Corp.  vs.  Intel Corp.

 Performance (%) 
      Timeline 
EMCORE 
22

EMCORE Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in EMCORE are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively unsteady forward-looking signals, EMCORE reported solid returns over the last few months and may actually be approaching a breakup point.
Intel 
33

Intel Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days. Despite somewhat unsteady basic indicators, Intel sustained solid returns over the last few months and may actually be approaching a breakup point.

EMCORE and Intel Volatility Contrast

 Predicted Return Density 
      Returns 
Check out your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.


 
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