Correlation Between Vivendi SE and Intel

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

By analyzing existing cross correlation between Vivendi SE and Intel, you can compare the effects of market volatilities on Vivendi SE 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 Vivendi SE with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vivendi SE and Intel.

Diversification Opportunities for Vivendi SE and Intel

-0.13

Correlation Coefficient

Vivendi SE  Intel

Good diversification

The 3 months correlation between Vivendi and Intel is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Vivendi SE and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Vivendi SE 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 Vivendi SE 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 Vivendi SE i.e., Vivendi SE and Intel go up and down completely randomly.

Pair Corralation between Vivendi SE and Intel

Assuming the 90 days horizon Vivendi SE is expected to under-perform the Intel. In addition to that, Vivendi SE is 2.6 times more volatile than Intel. It trades about -0.16 of its total potential returns per unit of risk. Intel is currently generating about 0.03 per unit of volatility. If you would invest  1,912  in Intel on September 18, 2024 and sell it today you would earn a total of  56.00  from holding Intel or generate 2.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vivendi SE  vs.  Intel

Vivendi SE

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivendi SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Intel

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable essential indicators, Intel is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Vivendi SE and Intel

The main advantage of trading using opposite Vivendi SE and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vivendi SE 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 Vivendi SE 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.

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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.