Correlation Between Esquire Financial and Intel
Can any of the company-specific risk be diversified away by investing in both Esquire Financial 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 Esquire Financial and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Esquire Financial Holdings and Intel, you can compare the effects of market volatilities on Esquire Financial 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 Esquire Financial with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Esquire Financial and Intel.
Diversification Opportunities for Esquire Financial and Intel
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Esquire and Intel is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Esquire Financial Holdings and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Esquire Financial 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 Esquire Financial Holdings 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 Esquire Financial i.e., Esquire Financial and Intel go up and down completely randomly.
Pair Corralation between Esquire Financial and Intel
Considering the 90-day investment horizon Esquire Financial is expected to generate 1.04 times less return on investment than Intel. But when comparing it to its historical volatility, Esquire Financial Holdings is 1.33 times less risky than Intel. It trades about 0.05 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 2,925 in Intel on January 19, 2024 and sell it today you would earn a total of 579.00 from holding Intel or generate 19.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Esquire Financial Holdings vs. Intel
Performance |
| Timeline |
| Esquire Financial |
| Intel |
Esquire Financial and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Esquire Financial and Intel
The main advantage of trading using opposite Esquire Financial and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Esquire Financial 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.| Esquire Financial vs. HMN Financial | Esquire Financial vs. Home Federal Bancorp | Esquire Financial vs. First Financial Northwest | Esquire Financial vs. First Northwest Bancorp |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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