Correlation Between Pyxis Tankers and Intel

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

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

Diversification Opportunities for Pyxis Tankers and Intel

-0.24

Correlation Coefficient

Pyxis Tankers  Intel

Very good diversification

The 3 months correlation between Pyxis and Intel is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Pyxis Tankers and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Pyxis Tankers 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 Pyxis Tankers 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 Pyxis Tankers i.e., Pyxis Tankers and Intel go up and down completely randomly.

Pair Corralation between Pyxis Tankers and Intel

Considering the 90-day investment horizon Pyxis Tankers is expected to generate 0.57 times more return on investment than Intel. However, Pyxis Tankers is 1.76 times less risky than Intel. It trades about -0.18 of its potential returns per unit of risk. Intel is currently generating about -0.34 per unit of risk. If you would invest  474.00  in Pyxis Tankers on January 26, 2024 and sell it today you would lose (27.00) from holding Pyxis Tankers or give up 5.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Pyxis Tankers  vs.  Intel

Pyxis Tankers

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Pyxis Tankers has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

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.

Pair Trading with Pyxis Tankers and Intel

The main advantage of trading using opposite Pyxis Tankers and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pyxis Tankers 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 Pyxis Tankers 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.