Correlation Between Sparekassen Sjaelland and Intel

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Can any of the company-specific risk be diversified away by investing in both Sparekassen Sjaelland 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 Sparekassen Sjaelland and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sparekassen Sjaelland Fyn AS and Intel, you can compare the effects of market volatilities on Sparekassen Sjaelland 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 Sparekassen Sjaelland with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sparekassen Sjaelland and Intel.

Diversification Opportunities for Sparekassen Sjaelland and Intel

-0.65
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Sparekassen and Intel is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Sparekassen Sjaelland-Fyn AS and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Sparekassen Sjaelland 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 Sparekassen Sjaelland Fyn 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 Sparekassen Sjaelland i.e., Sparekassen Sjaelland and Intel go up and down completely randomly.

Pair Corralation between Sparekassen Sjaelland and Intel

Assuming the 90 days trading horizon Sparekassen Sjaelland is expected to generate 1.85 times less return on investment than Intel. But when comparing it to its historical volatility, Sparekassen Sjaelland Fyn AS is 1.95 times less risky than Intel. It trades about 0.07 of its potential returns per unit of risk. Intel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  3,244  in Intel on December 29, 2023 and sell it today you would earn a total of  1,133  from holding Intel or generate 34.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Sparekassen Sjaelland-Fyn AS  vs.  Intel

 Performance 
       Timeline  
Sparekassen Sjaelland 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in Sparekassen Sjaelland Fyn AS are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak forward-looking indicators, Sparekassen Sjaelland may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Intel 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Sparekassen Sjaelland and Intel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Sparekassen Sjaelland and Intel

The main advantage of trading using opposite Sparekassen Sjaelland and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sparekassen Sjaelland 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.
The idea behind Sparekassen Sjaelland Fyn AS and Intel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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