Correlation Between Intel and Calix

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

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

Diversification Opportunities for Intel and Calix

0.23

Correlation Coefficient

Intel  Calix

Modest diversification

The 3 months correlation between Intel and Calix is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Calix Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Calix Inc 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 Calix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Calix Inc has no effect on the direction of Intel i.e., Intel and Calix go up and down completely randomly.

Pair Corralation between Intel and Calix

Given the investment horizon of 90 days Intel is expected to generate 1.31 times less return on investment than Calix. In addition to that, Intel is 2.07 times more volatile than Calix Inc. It trades about 0.09 of its total potential returns per unit of risk. Calix Inc is currently generating about 0.23 per unit of volatility. If you would invest  4,702  in Calix Inc on May 21, 2025 and sell it today you would earn a total of  1,079  from holding Calix Inc or generate 22.95% return on investment over 90 days.

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

Intel  vs.  Calix Inc

Intel

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 6 (%) 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.

Calix Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Calix Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Calix showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Calix

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

The idea behind Intel and Calix Inc 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.