Correlation Between Harboes Bryggeri and Intel
Can any of the company-specific risk be diversified away by investing in both Harboes Bryggeri 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 Harboes Bryggeri and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Harboes Bryggeri AS and Intel, you can compare the effects of market volatilities on Harboes Bryggeri 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 Harboes Bryggeri with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Harboes Bryggeri and Intel.
Diversification Opportunities for Harboes Bryggeri and Intel
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Harboes and Intel is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Harboes Bryggeri AS and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Harboes Bryggeri 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 Harboes Bryggeri AS 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 Harboes Bryggeri i.e., Harboes Bryggeri and Intel go up and down completely randomly.
Pair Corralation between Harboes Bryggeri and Intel
Assuming the 90 days trading horizon Harboes Bryggeri AS is expected to generate 0.69 times more return on investment than Intel. However, Harboes Bryggeri AS is 1.45 times less risky than Intel. It trades about 0.04 of its potential returns per unit of risk. Intel is currently generating about 0.0 per unit of risk. If you would invest 8,200 in Harboes Bryggeri AS on January 26, 2024 and sell it today you would earn a total of 2,700 from holding Harboes Bryggeri AS or generate 32.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
Harboes Bryggeri AS vs. Intel
Performance |
| Timeline |
| Harboes Bryggeri |
| Intel |
Harboes Bryggeri and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Harboes Bryggeri and Intel
The main advantage of trading using opposite Harboes Bryggeri and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Harboes Bryggeri 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.| Harboes Bryggeri vs. Royal Unibrew AS | Harboes Bryggeri vs. Matas AS | Harboes Bryggeri vs. Nnit AS | Harboes Bryggeri vs. DFDS AS |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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