Correlation Between Kraft Heinz and Intel
Can any of the company-specific risk be diversified away by investing in both Kraft Heinz 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 Kraft Heinz and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kraft Heinz Co and Intel, you can compare the effects of market volatilities on Kraft Heinz 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 Kraft Heinz with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kraft Heinz and Intel.
Diversification Opportunities for Kraft Heinz and Intel
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Kraft and Intel is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Kraft Heinz Co and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Kraft Heinz 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 Kraft Heinz Co 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 Kraft Heinz i.e., Kraft Heinz and Intel go up and down completely randomly.
Pair Corralation between Kraft Heinz and Intel
Considering the 90-day investment horizon Kraft Heinz is expected to generate 1.07 times less return on investment than Intel. But when comparing it to its historical volatility, Kraft Heinz Co is 2.09 times less risky than Intel. It trades about 0.02 of its potential returns per unit of risk. Intel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,492 in Intel on January 25, 2024 and sell it today you would lose (42.00) from holding Intel or give up 1.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kraft Heinz Co vs. Intel
Performance |
| Timeline |
| Kraft Heinz |
| Intel |
Kraft Heinz and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kraft Heinz and Intel
The main advantage of trading using opposite Kraft Heinz and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kraft Heinz 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.| Kraft Heinz vs. General Mills | Kraft Heinz vs. Campbell Soup | Kraft Heinz vs. ConAgra Foods | Kraft Heinz vs. Hormel Foods |
| 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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