Correlation Between Foghorn Therapeutics and Intel

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

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

Diversification Opportunities for Foghorn Therapeutics and Intel

-0.56

Correlation Coefficient

Foghorn Therapeutics  Intel

Excellent diversification

The 3 months correlation between Foghorn and Intel is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Foghorn Therapeutics and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Foghorn Therapeutics 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 Foghorn Therapeutics 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 Foghorn Therapeutics i.e., Foghorn Therapeutics and Intel go up and down completely randomly.

Pair Corralation between Foghorn Therapeutics and Intel

Given the investment horizon of 90 days Foghorn Therapeutics is expected to under-perform the Intel. In addition to that, Foghorn Therapeutics is 1.01 times more volatile than Intel. It trades about -0.11 of its total potential returns per unit of risk. Intel is currently generating about 0.18 per unit of volatility. If you would invest  2,330  in Intel on July 13, 2025 and sell it today you would earn a total of  1,307  from holding Intel or generate 56.09% return on investment over 90 days.

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

Foghorn Therapeutics  vs.  Intel

Foghorn Therapeutics

Risk-Adjusted Performance

Weakest

Over the last 90 days Foghorn Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in November 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Intel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Foghorn Therapeutics and Intel

The main advantage of trading using opposite Foghorn Therapeutics and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Foghorn Therapeutics 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 Foghorn Therapeutics 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.