Correlation Between OPC Energy and Intel
Can any of the company-specific risk be diversified away by investing in both OPC Energy 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 OPC Energy and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between OPC Energy and Intel, you can compare the effects of market volatilities on OPC Energy 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 OPC Energy with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of OPC Energy and Intel.
Diversification Opportunities for OPC Energy and Intel
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between OPC and Intel is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding OPC Energy and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and OPC Energy 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 OPC Energy 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 OPC Energy i.e., OPC Energy and Intel go up and down completely randomly.
Pair Corralation between OPC Energy and Intel
Assuming the 90 days trading horizon OPC Energy is expected to generate 0.6 times more return on investment than Intel. However, OPC Energy is 1.66 times less risky than Intel. It trades about 0.23 of its potential returns per unit of risk. Intel is currently generating about 0.05 per unit of risk. If you would invest 247,700 in OPC Energy on December 29, 2023 and sell it today you would earn a total of 15,400 from holding OPC Energy or generate 6.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 77.27% |
Values | Daily Returns |
OPC Energy vs. Intel
Performance |
Timeline |
OPC Energy |
Intel |
OPC Energy and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with OPC Energy and Intel
The main advantage of trading using opposite OPC Energy and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OPC Energy 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.OPC Energy vs. Safe T Group | OPC Energy vs. WhiteSmoke Software | OPC Energy vs. Foresight Autonomous Holdings | OPC Energy vs. Internet Gold Golden |
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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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