Correlation Between Intel and A2 Milk

Can any of the company-specific risk be diversified away by investing in both Intel and A2 Milk 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 and A2 Milk into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and The a2 Milk, you can compare the effects of market volatilities on Intel and A2 Milk 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 with a short position of A2 Milk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and A2 Milk.

Diversification Opportunities for Intel and A2 Milk

0.07

Correlation Coefficient

Intel  A2 Milk

Significant diversification

The 3 months correlation between Intel and ACOPF is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Intel and The a2 Milk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on a2 Milk and Intel 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 are associated (or correlated) with A2 Milk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of a2 Milk has no effect on the direction of Intel i.e., Intel and A2 Milk go up and down completely randomly.

Pair Corralation between Intel and A2 Milk

Given the investment horizon of 90 days Intel is expected to generate 1.35 times more return on investment than A2 Milk. However, Intel is 1.35 times more volatile than The a2 Milk. It trades about 0.11 of its potential returns per unit of risk. The a2 Milk is currently generating about 0.1 per unit of risk. If you would invest  2,055  in Intel on May 26, 2025 and sell it today you would earn a total of  425.00  from holding Intel or generate 20.68% return on investment over 90 days.

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

Intel  vs.  The a2 Milk

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 weak basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

a2 Milk

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in The a2 Milk are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, A2 Milk reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and A2 Milk

The main advantage of trading using opposite Intel and A2 Milk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, A2 Milk 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 A2 Milk will offset losses from the drop in A2 Milk's long position.

The idea behind Intel and The a2 Milk 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.