Correlation Between Twitter and Intel Corp

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

Diversification Opportunities for Twitter and Intel Corp

0.34
  Correlation Coefficient

Weak diversification

The 3 months correlation between Twitter and Intel is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Twitter and Intel Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel Corp and Twitter 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 Twitter 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 Twitter i.e., Twitter and Intel Corp go up and down completely randomly.

Pair Corralation between Twitter and Intel Corp

Given the investment horizon of 90 days Twitter is expected to generate 0.87 times more return on investment than Intel Corp. However, Twitter is 1.15 times less risky than Intel Corp. It trades about 0.56 of its potential returns per unit of risk. Intel Corp is currently generating about -0.1 per unit of risk. If you would invest  3,265  in Twitter on May 12, 2022 and sell it today you would earn a total of  1,018  from holding Twitter or generate 31.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Twitter  vs.  Intel Corp

 Performance (%) 
       Timeline  
Twitter 
Twitter Performance
0 of 100
Over the last 90 days Twitter has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Twitter is not utilizing all of its potentials. The new stock price agitation, may contribute to short-term losses for the retail investors.

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

Intel Price Channel

Twitter and Intel Corp Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Twitter and Intel Corp

The main advantage of trading using opposite Twitter and Intel Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Twitter 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.
The idea behind Twitter 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.
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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