Correlation Between Scope Metals and Intel
Can any of the company-specific risk be diversified away by investing in both Scope Metals 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 Scope Metals and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Scope Metals Group and Intel, you can compare the effects of market volatilities on Scope Metals 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 Scope Metals with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Scope Metals and Intel.
Diversification Opportunities for Scope Metals and Intel
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Scope and Intel is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Scope Metals Group and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Scope Metals 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 Scope Metals Group 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 Scope Metals i.e., Scope Metals and Intel go up and down completely randomly.
Pair Corralation between Scope Metals and Intel
Assuming the 90 days trading horizon Scope Metals is expected to generate 1.78 times less return on investment than Intel. But when comparing it to its historical volatility, Scope Metals Group is 1.16 times less risky than Intel. It trades about 0.02 of its potential returns per unit of risk. Intel is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,988 in Intel on January 26, 2024 and sell it today you would earn a total of 462.00 from holding Intel or generate 15.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 80.65% |
Values | Daily Returns |
Scope Metals Group vs. Intel
Performance |
Timeline |
Scope Metals Group |
Intel |
Scope Metals and Intel Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Scope Metals and Intel
The main advantage of trading using opposite Scope Metals and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Scope Metals 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.Scope Metals vs. Delek Automotive Systems | Scope Metals vs. Kerur Holdings | Scope Metals vs. Neto ME Holdings | Scope Metals vs. Bank Leumi Le Israel |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |