Correlation Between Intel and Select Fund

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

By analyzing existing cross correlation between Intel and Select Fund R, you can compare the effects of market volatilities on Intel and Select Fund 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 Select Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Select Fund.

Diversification Opportunities for Intel and Select Fund

0.61

Correlation Coefficient

Intel  Select Fund

Poor diversification

The 3 months correlation between Intel and Select is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Select Fund R in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Fund R 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 Select Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Fund R has no effect on the direction of Intel i.e., Intel and Select Fund go up and down completely randomly.

Pair Corralation between Intel and Select Fund

Given the investment horizon of 90 days Intel is expected to under-perform the Select Fund. In addition to that, Intel is 2.99 times more volatile than Select Fund R. It trades about -0.01 of its total potential returns per unit of risk. Select Fund R is currently generating about 0.25 per unit of volatility. If you would invest  10,305  in Select Fund R on May 2, 2025 and sell it today you would earn a total of  1,558  from holding Select Fund R or generate 15.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Intel  vs.  Select Fund R

Intel

Risk-Adjusted Performance

Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Select Fund R

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Select Fund R are ranked lower than 19 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Select Fund showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Select Fund

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

The idea behind Intel and Select Fund R 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.