Correlation Between Intel and ClearOne

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

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

Diversification Opportunities for Intel and ClearOne

0.63

Correlation Coefficient

Intel  ClearOne

Poor diversification

The 3 months correlation between Intel and ClearOne is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ClearOne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ClearOne 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 ClearOne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ClearOne has no effect on the direction of Intel i.e., Intel and ClearOne go up and down completely randomly.

Pair Corralation between Intel and ClearOne

Given the investment horizon of 90 days Intel is expected to under-perform the ClearOne. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 2.61 times less risky than ClearOne. The stock trades about -0.01 of its potential returns per unit of risk. The ClearOne is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  895.00  in ClearOne on May 13, 2025 and sell it today you would lose (434.00) from holding ClearOne or give up 48.49% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	99.8%
Values	Daily Returns

Intel  vs.  ClearOne

Intel

Risk-Adjusted Performance

Weakest

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

ClearOne

Risk-Adjusted Performance

Weakest

Over the last 90 days ClearOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Intel and ClearOne

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

The idea behind Intel and ClearOne 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.