Correlation Between Intel and Catalyst Pharmaceuticals

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

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

Diversification Opportunities for Intel and Catalyst Pharmaceuticals

-0.61

Correlation Coefficient

Intel  Catalyst Pharmaceuticals

Excellent diversification

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

Pair Corralation between Intel and Catalyst Pharmaceuticals

Given the investment horizon of 90 days Intel is expected to generate 1.49 times more return on investment than Catalyst Pharmaceuticals. However, Intel is 1.49 times more volatile than Catalyst Pharmaceuticals. It trades about 0.09 of its potential returns per unit of risk. Catalyst Pharmaceuticals is currently generating about -0.07 per unit of risk. If you would invest  2,059  in Intel on April 23, 2025 and sell it today you would earn a total of  267.00  from holding Intel or generate 12.97% return on investment over 90 days.

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

Intel  vs.  Catalyst Pharmaceuticals

Intel

Risk-Adjusted Performance

Modest

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 fragile basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Catalyst Pharmaceuticals

Risk-Adjusted Performance

Very Weak

Over the last 90 days Catalyst Pharmaceuticals has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Intel and Catalyst Pharmaceuticals

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

The idea behind Intel and Catalyst Pharmaceuticals 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.