Correlation Between Intel and ROGERS

Can any of the company-specific risk be diversified away by investing in both Intel and ROGERS 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 ROGERS into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and ROGERS MUNICATIONS INC, you can compare the effects of market volatilities on Intel and ROGERS 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 ROGERS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ROGERS.

Diversification Opportunities for Intel and ROGERS

-0.39

Correlation Coefficient

Intel  ROGERS

Very good diversification

The 3 months correlation between Intel and ROGERS is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ROGERS MUNICATIONS INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROGERS MUNICATIONS INC 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 ROGERS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROGERS MUNICATIONS INC has no effect on the direction of Intel i.e., Intel and ROGERS go up and down completely randomly.

Pair Corralation between Intel and ROGERS

Given the investment horizon of 90 days Intel is expected to generate 1.46 times more return on investment than ROGERS. However, Intel is 1.46 times more volatile than ROGERS MUNICATIONS INC. It trades about 0.04 of its potential returns per unit of risk. ROGERS MUNICATIONS INC is currently generating about -0.29 per unit of risk. If you would invest  2,256  in Intel on July 23, 2024 and sell it today you would earn a total of  28.00  from holding Intel or generate 1.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	66.67%
Values	Daily Returns

Intel  vs.  ROGERS MUNICATIONS INC

Intel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain rather sound which may send shares a bit higher in November 2024. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

ROGERS MUNICATIONS INC

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ROGERS MUNICATIONS INC has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, ROGERS is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and ROGERS

The main advantage of trading using opposite Intel and ROGERS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, ROGERS 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 ROGERS will offset losses from the drop in ROGERS's long position.

The idea behind Intel and ROGERS MUNICATIONS INC 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.