Correlation Between Starbucks Corp and Intel Corp

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Starbucks Corp and Intel Corp 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 Starbucks Corp and Intel Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Starbucks Corp and Intel Corp, you can compare the effects of market volatilities on Starbucks Corp and Intel Corp 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 Starbucks Corp with a short position of Intel Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Starbucks Corp and Intel Corp.

Diversification Opportunities for Starbucks Corp and Intel Corp

-0.51
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Starbucks and Intel is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Starbucks Corp and Intel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp and Starbucks 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 Starbucks Corp are associated (or correlated) with Intel Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel Corp has no effect on the direction of Starbucks Corp i.e., Starbucks Corp and Intel Corp go up and down completely randomly.

Pair Corralation between Starbucks Corp and Intel Corp

Given the investment horizon of 90 days Starbucks Corp is expected to generate 1.0 times more return on investment than Intel Corp. However, Starbucks Corp is 1.0 times more volatile than Intel Corp. It trades about 0.1 of its potential returns per unit of risk. Intel Corp is currently generating about -0.17 per unit of risk. If you would invest  8,452  in Starbucks Corp on July 6, 2022 and sell it today you would earn a total of  399.00  from holding Starbucks Corp or generate 4.72% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Starbucks Corp  vs.  Intel Corp

 Performance (%) 
       Timeline  
Starbucks Corp 
Starbucks Performance
7 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Starbucks Corp are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly conflicting basic indicators, Starbucks Corp may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Starbucks Price Channel

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 conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Intel Price Channel

Starbucks Corp and Intel Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Starbucks Corp and Intel Corp

The main advantage of trading using opposite Starbucks Corp and Intel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Starbucks Corp position performs unexpectedly, Intel Corp 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 Corp will offset losses from the drop in Intel Corp's long position.
Starbucks Corp vs. Amazon Inc
The idea behind Starbucks Corp and Intel Corp 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.
Intel Corp vs. Amazon Inc
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Go
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Go
Stock Tickers
Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites
Go
Portfolio Comparator
Compare the composition, asset allocations and performance of any two portfolios in your account
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Probability Of Bankruptcy
Get analysis of equity chance of financial distress in the next 2 years
Go