Correlation Between Intel and BlockchainK2 Corp

Can any of the company-specific risk be diversified away by investing in both Intel and BlockchainK2 Corp 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 BlockchainK2 Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and BlockchainK2 Corp, you can compare the effects of market volatilities on Intel and BlockchainK2 Corp 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 BlockchainK2 Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and BlockchainK2 Corp.

Diversification Opportunities for Intel and BlockchainK2 Corp

-0.26

Correlation Coefficient

Intel  BlockchainK2 Corp

Very good diversification

The 3 months correlation between Intel and BlockchainK2 is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Intel and BlockchainK2 Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockchainK2 Corp 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 BlockchainK2 Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockchainK2 Corp has no effect on the direction of Intel i.e., Intel and BlockchainK2 Corp go up and down completely randomly.

Pair Corralation between Intel and BlockchainK2 Corp

Given the investment horizon of 90 days Intel is expected to generate 17.08 times less return on investment than BlockchainK2 Corp. But when comparing it to its historical volatility, Intel is 15.22 times less risky than BlockchainK2 Corp. It trades about 0.11 of its potential returns per unit of risk. BlockchainK2 Corp is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  20.00  in BlockchainK2 Corp on May 25, 2025 and sell it today you would lose (16.00) from holding BlockchainK2 Corp or give up 80.0% of portfolio value over 90 days.

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

Intel  vs.  BlockchainK2 Corp

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.

BlockchainK2 Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BlockchainK2 Corp are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile fundamental indicators, BlockchainK2 Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and BlockchainK2 Corp

The main advantage of trading using opposite Intel and BlockchainK2 Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, BlockchainK2 Corp 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 BlockchainK2 Corp will offset losses from the drop in BlockchainK2 Corp's long position.

The idea behind Intel and BlockchainK2 Corp 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.