Correlation Between Intel and Apple
Can any of the company-specific risk be diversified away by investing in both Intel and Apple 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 Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and Apple Inc, you can compare the effects of market volatilities on Intel and Apple 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 Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Apple.
Diversification Opportunities for Intel and Apple
Very weak diversification
The 3 months correlation between Intel and Apple is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple 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 Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of Intel i.e., Intel and Apple go up and down completely randomly.
Pair Corralation between Intel and Apple
Given the investment horizon of 90 days Intel is expected to generate 1.8 times more return on investment than Apple. However, Intel is 1.8 times more volatile than Apple Inc. It trades about 0.05 of its potential returns per unit of risk. Apple Inc is currently generating about -0.15 per unit of risk. If you would invest 4,273 in Intel on December 29, 2023 and sell it today you would earn a total of 104.00 from holding Intel or generate 2.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Intel vs. Apple Inc
Performance |
Timeline |
Intel |
Apple Inc |
Intel and Apple Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Intel and Apple
The main advantage of trading using opposite Intel and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.Intel vs. Fevertree Drinks Plc | Intel vs. Yuexiu Transport Infrastructure | Intel vs. The Coca Cola | Intel vs. Eagle Bulk Shipping |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |