Correlation Between Maj Invest and Intel
Can any of the company-specific risk be diversified away by investing in both Maj Invest 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 Maj Invest and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Maj Invest and Intel, you can compare the effects of market volatilities on Maj Invest 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 Maj Invest with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maj Invest and Intel.
Diversification Opportunities for Maj Invest and Intel
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Maj and Intel is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Maj Invest and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Maj Invest 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 Maj Invest 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 Maj Invest i.e., Maj Invest and Intel go up and down completely randomly.
Pair Corralation between Maj Invest and Intel
Assuming the 90 days trading horizon Maj Invest is expected to generate 0.12 times more return on investment than Intel. However, Maj Invest is 8.05 times less risky than Intel. It trades about -0.2 of its potential returns per unit of risk. Intel is currently generating about -0.35 per unit of risk. If you would invest 10,053 in Maj Invest on January 24, 2024 and sell it today you would lose (127.00) from holding Maj Invest or give up 1.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Maj Invest vs. Intel
Performance |
| Timeline |
| Maj Invest |
| Intel |
Maj Invest and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maj Invest and Intel
The main advantage of trading using opposite Maj Invest and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maj Invest 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.| Maj Invest vs. Novo Nordisk AS | Maj Invest vs. Nordea Bank Abp | Maj Invest vs. DSV Panalpina AS | Maj Invest vs. AP Mller |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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