Correlation Between Intel Corp and Cyclacel Pharmaceuti

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

Diversification Opportunities for Intel Corp and Cyclacel Pharmaceuti

-0.42
  Correlation Coefficient

Very good diversification

The 3 months correlation between Intel and Cyclacel is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp and Cyclacel Pharmaceuti in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyclacel Pharmaceuti and Intel Corp 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 Corp are associated (or correlated) with Cyclacel Pharmaceuti. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyclacel Pharmaceuti has no effect on the direction of Intel Corp i.e., Intel Corp and Cyclacel Pharmaceuti go up and down completely randomly.

Pair Corralation between Intel Corp and Cyclacel Pharmaceuti

Given the investment horizon of 90 days Intel Corp is expected to generate 0.47 times more return on investment than Cyclacel Pharmaceuti. However, Intel Corp is 2.14 times less risky than Cyclacel Pharmaceuti. It trades about -0.52 of its potential returns per unit of risk. Cyclacel Pharmaceuti is currently generating about -0.28 per unit of risk. If you would invest  3,489  in Intel Corp on June 26, 2022 and sell it today you would lose (737.00)  from holding Intel Corp or give up 21.12% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Intel Corp  vs.  Cyclacel Pharmaceuti

 Performance (%) 
       Timeline  
Intel Corp 
Intel Performance
0 of 100
Over the last 90 days Intel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in October 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Intel Price Channel

Cyclacel Pharmaceuti 
Cyclacel Performance
1 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Cyclacel Pharmaceuti are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, Cyclacel Pharmaceuti may actually be approaching a critical reversion point that can send shares even higher in October 2022.

Cyclacel Price Channel

Intel Corp and Cyclacel Pharmaceuti Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Intel Corp and Cyclacel Pharmaceuti

The main advantage of trading using opposite Intel Corp and Cyclacel Pharmaceuti positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp position performs unexpectedly, Cyclacel Pharmaceuti 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 Cyclacel Pharmaceuti will offset losses from the drop in Cyclacel Pharmaceuti's long position.
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The idea behind Intel Corp and Cyclacel Pharmaceuti 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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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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