Correlation Between Credo Technology and Intel

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

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

Diversification Opportunities for Credo Technology and Intel

0.36

Correlation Coefficient

Credo Technology  Intel

Weak diversification

The 3 months correlation between Credo and Intel is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Credo Technology Group and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Credo Technology 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 Credo Technology Group 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 Credo Technology i.e., Credo Technology and Intel go up and down completely randomly.

Pair Corralation between Credo Technology and Intel

Given the investment horizon of 90 days Credo Technology Group is expected to generate 1.28 times more return on investment than Intel. However, Credo Technology is 1.28 times more volatile than Intel. It trades about 0.24 of its potential returns per unit of risk. Intel is currently generating about 0.11 per unit of risk. If you would invest  6,365  in Credo Technology Group on May 27, 2025 and sell it today you would earn a total of  5,039  from holding Credo Technology Group or generate 79.17% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Credo Technology Group  vs.  Intel

Credo Technology

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Credo Technology Group are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, Credo Technology displayed solid returns over the last few months and may actually be approaching a breakup point.

Intel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Credo Technology and Intel

The main advantage of trading using opposite Credo Technology and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Credo Technology 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 Credo Technology Group 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 Transaction History module to view history of all your transactions and understand their impact on performance.