Correlation Between Intel and Calyxt

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

By analyzing existing cross correlation between Intel and Calyxt Inc, you can compare the effects of market volatilities on Intel and Calyxt 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 Calyxt. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Calyxt.

Diversification Opportunities for Intel and Calyxt

-0.38

Correlation Coefficient

Intel  Calyxt

Very good diversification

The 3 months correlation between Intel and Calyxt is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Calyxt Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calyxt Inc 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 Calyxt. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calyxt Inc has no effect on the direction of Intel i.e., Intel and Calyxt go up and down completely randomly.

Pair Corralation between Intel and Calyxt

If you would invest  630.00  in Calyxt Inc on January 30, 2024 and sell it today you would earn a total of  0.00  from holding Calyxt Inc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	4.55%
Values	Daily Returns

Intel  vs.  Calyxt Inc

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 weak 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.

Calyxt Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Calyxt Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Calyxt is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intel and Calyxt

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

The idea behind Intel and Calyxt Inc 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 Transaction History module to view history of all your transactions and understand their impact on performance.