Correlation Between Intel Corp and Compania

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

By analyzing existing cross correlation between Intel Corp CEDEAR and Compania de Transporte, you can compare the effects of market volatilities on Intel Corp and Compania 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 Compania. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel Corp and Compania.

Diversification Opportunities for Intel Corp and Compania

-0.39

Correlation Coefficient

Intel Corp  Compania

Very good diversification

The 3 months correlation between Intel and Compania is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp CEDEAR and Compania de Transporte in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compania de Transporte 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 CEDEAR are associated (or correlated) with Compania. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compania de Transporte has no effect on the direction of Intel Corp i.e., Intel Corp and Compania go up and down completely randomly.

Pair Corralation between Intel Corp and Compania

Assuming the 90 days trading horizon Intel Corp is expected to generate 2.52 times less return on investment than Compania. But when comparing it to its historical volatility, Intel Corp CEDEAR is 1.4 times less risky than Compania. It trades about 0.04 of its potential returns per unit of risk. Compania de Transporte is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  227,000  in Compania de Transporte on May 11, 2025 and sell it today you would earn a total of  31,000  from holding Compania de Transporte or generate 13.66% return on investment over 90 days.

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

Intel Corp CEDEAR  vs.  Compania de Transporte

Intel Corp CEDEAR

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Intel Corp CEDEAR are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Intel Corp may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Compania de Transporte

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Compania de Transporte are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Compania sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel Corp and Compania

The main advantage of trading using opposite Intel Corp and Compania positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp position performs unexpectedly, Compania 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 Compania will offset losses from the drop in Compania's long position.

The idea behind Intel Corp CEDEAR and Compania de Transporte 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.