Correlation Between ROSENBAUER INTERNAT and Intel
Can any of the company-specific risk be diversified away by investing in both ROSENBAUER INTERNAT 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 ROSENBAUER INTERNAT and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ROSENBAUER INTERNAT and Intel, you can compare the effects of market volatilities on ROSENBAUER INTERNAT 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 ROSENBAUER INTERNAT with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of ROSENBAUER INTERNAT and Intel.
Diversification Opportunities for ROSENBAUER INTERNAT and Intel
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ROSENBAUER and Intel is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding ROSENBAUER INTERNAT and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and ROSENBAUER INTERNAT 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 ROSENBAUER INTERNAT 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 ROSENBAUER INTERNAT i.e., ROSENBAUER INTERNAT and Intel go up and down completely randomly.
Pair Corralation between ROSENBAUER INTERNAT and Intel
Assuming the 90 days trading horizon ROSENBAUER INTERNAT is expected to generate 0.62 times more return on investment than Intel. However, ROSENBAUER INTERNAT is 1.62 times less risky than Intel. It trades about 0.33 of its potential returns per unit of risk. Intel is currently generating about -0.29 per unit of risk. If you would invest 2,740 in ROSENBAUER INTERNAT on January 17, 2024 and sell it today you would earn a total of 290.00 from holding ROSENBAUER INTERNAT or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
ROSENBAUER INTERNAT vs. Intel
Performance |
| Timeline |
| ROSENBAUER INTERNAT |
| Intel |
ROSENBAUER INTERNAT and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ROSENBAUER INTERNAT and Intel
The main advantage of trading using opposite ROSENBAUER INTERNAT and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ROSENBAUER INTERNAT 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.| ROSENBAUER INTERNAT vs. Silk Road Medical | ROSENBAUER INTERNAT vs. Kaufman Broad SA | ROSENBAUER INTERNAT vs. Broadcom | ROSENBAUER INTERNAT vs. Transport International Holdings |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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