Correlation Between Thompson Largecap and Intel

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Can any of the company-specific risk be diversified away by investing in both Thompson Largecap 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 Thompson Largecap and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Thompson Largecap Fund and Intel, you can compare the effects of market volatilities on Thompson Largecap 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 Thompson Largecap with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thompson Largecap and Intel.

Diversification Opportunities for Thompson Largecap and Intel

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Thompson and Intel is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding THOMPSON LARGECAP FUND and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Thompson Largecap 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 Thompson Largecap Fund 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 Thompson Largecap i.e., Thompson Largecap and Intel go up and down completely randomly.

Pair Corralation between Thompson Largecap and Intel

If you would invest  4,440  in Intel on December 29, 2023 and sell it today you would lose (23.00) from holding Intel or give up 0.52% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

THOMPSON LARGECAP FUND  vs.  Intel

 Performance 
       Timeline  
Thompson Largecap Fund 

Risk-Adjusted Performance

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Good
Over the last 90 days Thompson Largecap Fund has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Thompson Largecap is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Intel 

Risk-Adjusted Performance

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Over the last 90 days Intel 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 sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Thompson Largecap and Intel Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Thompson Largecap and Intel

The main advantage of trading using opposite Thompson Largecap and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thompson Largecap 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 Thompson Largecap Fund 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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