Correlation Between Intel and Agillic AS

Can any of the company-specific risk be diversified away by investing in both Intel and Agillic AS 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 Intel and Agillic AS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and Agillic AS, you can compare the effects of market volatilities on Intel and Agillic AS 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 Intel with a short position of Agillic AS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Agillic AS.

Diversification Opportunities for Intel and Agillic AS

0.55

Correlation Coefficient

Intel  Agillic AS

Very weak diversification

The 3 months correlation between Intel and Agillic is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Agillic AS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agillic AS and Intel 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 Intel are associated (or correlated) with Agillic AS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agillic AS has no effect on the direction of Intel i.e., Intel and Agillic AS go up and down completely randomly.

Pair Corralation between Intel and Agillic AS

Given the investment horizon of 90 days Intel is expected to generate 0.93 times more return on investment than Agillic AS. However, Intel is 1.07 times less risky than Agillic AS. It trades about 0.0 of its potential returns per unit of risk. Agillic AS is currently generating about -0.04 per unit of risk. If you would invest  4,270  in Intel on January 17, 2024 and sell it today you would lose (639.00) from holding Intel or give up 14.96% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Intel  vs.  Agillic AS

Intel

Risk-Adjusted Performance

0 of 100

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 unfluctuating performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Agillic AS

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agillic AS has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's fundamental indicators remain rather sound which may send shares a bit higher in May 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Intel and Agillic AS

The main advantage of trading using opposite Intel and Agillic AS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Agillic AS 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 Agillic AS will offset losses from the drop in Agillic AS's long position.

The idea behind Intel and Agillic AS 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.