Correlation Between Intel and ChitogenX

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

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

Diversification Opportunities for Intel and ChitogenX

-0.43

Correlation Coefficient

Intel  ChitogenX

Very good diversification

The 3 months correlation between Intel and ChitogenX is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ChitogenX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ChitogenX 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 ChitogenX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ChitogenX has no effect on the direction of Intel i.e., Intel and ChitogenX go up and down completely randomly.

Pair Corralation between Intel and ChitogenX

Given the investment horizon of 90 days Intel is expected to generate 35.88 times less return on investment than ChitogenX. But when comparing it to its historical volatility, Intel is 16.52 times less risky than ChitogenX. It trades about 0.03 of its potential returns per unit of risk. ChitogenX is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  0.61  in ChitogenX on May 15, 2025 and sell it today you would lose (0.50) from holding ChitogenX or give up 81.97% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	96.88%
Values	Daily Returns

Intel  vs.  ChitogenX

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

ChitogenX

Risk-Adjusted Performance

Mild

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

Pair Trading with Intel and ChitogenX

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

The idea behind Intel and ChitogenX 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.