Correlation Between Intel and Dell Technologies

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

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

Diversification Opportunities for Intel and Dell Technologies

0.48

Correlation Coefficient

Intel  Dell Technologies

Very weak diversification

The 3 months correlation between Intel and Dell is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Dell Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dell Technologies 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 Dell Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dell Technologies has no effect on the direction of Intel i.e., Intel and Dell Technologies go up and down completely randomly.

Pair Corralation between Intel and Dell Technologies

Given the investment horizon of 90 days Intel is expected to under-perform the Dell Technologies. In addition to that, Intel is 1.3 times more volatile than Dell Technologies. It trades about -0.01 of its total potential returns per unit of risk. Dell Technologies is currently generating about 0.23 per unit of volatility. If you would invest  9,398  in Dell Technologies on May 5, 2025 and sell it today you would earn a total of  3,334  from holding Dell Technologies or generate 35.48% return on investment over 90 days.

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

Intel  vs.  Dell Technologies

Intel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Intel is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Dell Technologies

Risk-Adjusted Performance

Solid

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

Pair Trading with Intel and Dell Technologies

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

The idea behind Intel and Dell Technologies 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.

Check out your portfolio center.

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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.