Correlation Between ROCKWOOL International and Intel
Can any of the company-specific risk be diversified away by investing in both ROCKWOOL International 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 ROCKWOOL International and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ROCKWOOL International AS and Intel, you can compare the effects of market volatilities on ROCKWOOL International 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 ROCKWOOL International with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROCKWOOL International and Intel.
Diversification Opportunities for ROCKWOOL International and Intel
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ROCKWOOL and Intel is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding ROCKWOOL International AS and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and ROCKWOOL International 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 ROCKWOOL International 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 ROCKWOOL International i.e., ROCKWOOL International and Intel go up and down completely randomly.
Pair Corralation between ROCKWOOL International and Intel
Assuming the 90 days trading horizon ROCKWOOL International AS is expected to generate 0.76 times more return on investment than Intel. However, ROCKWOOL International AS is 1.32 times less risky than Intel. It trades about 0.08 of its potential returns per unit of risk. Intel is currently generating about 0.04 per unit of risk. If you would invest 164,000 in ROCKWOOL International AS on January 26, 2024 and sell it today you would earn a total of 65,000 from holding ROCKWOOL International AS or generate 39.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.6% |
| Values | Daily Returns |
ROCKWOOL International AS vs. Intel
Performance |
| Timeline |
| ROCKWOOL International |
| Intel |
ROCKWOOL International and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROCKWOOL International and Intel
The main advantage of trading using opposite ROCKWOOL International and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROCKWOOL International 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.| ROCKWOOL International vs. Per Aarsleff Holding | ROCKWOOL International vs. Matas AS | ROCKWOOL International vs. DFDS AS | ROCKWOOL International vs. ALK Abell AS |
| Intel vs. NVIDIA | Intel vs. Taiwan Semiconductor Manufacturing | Intel vs. Marvell Technology Group | Intel vs. Micron Technology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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