Correlation Between Intel and Meta Platforms
Can any of the company-specific risk be diversified away by investing in both Intel and Meta Platforms 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 Intel and Meta Platforms into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Meta Platforms, you can compare the effects of market volatilities on Intel and Meta Platforms 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 Intel with a short position of Meta Platforms. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Meta Platforms.
Diversification Opportunities for Intel and Meta Platforms
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intel and Meta is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Meta Platforms in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Meta Platforms and Intel 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 Intel are associated (or correlated) with Meta Platforms. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Meta Platforms has no effect on the direction of Intel i.e., Intel and Meta Platforms go up and down completely randomly.
Pair Corralation between Intel and Meta Platforms
If you would invest 4,199 in Intel on December 30, 2023 and sell it today you would earn a total of 218.00 from holding Intel or generate 5.19% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 4.55% |
Values | Daily Returns |
Intel vs. Meta Platforms
Performance |
Timeline |
Intel |
Meta Platforms |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Intel and Meta Platforms Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intel and Meta Platforms
The main advantage of trading using opposite Intel and Meta Platforms positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Meta Platforms 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 Meta Platforms will offset losses from the drop in Meta Platforms' long position.Intel vs. Life Time Group | Intel vs. SBM Offshore NV | Intel vs. WT Offshore | Intel vs. European Wax Center |
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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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