Correlation Between Intel and Dimensional International

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

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

Diversification Opportunities for Intel and Dimensional International

0.42

Correlation Coefficient

Intel  Dimensional International

Very weak diversification

The 3 months correlation between Intel and Dimensional is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Dimensional International Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dimensional International 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 Dimensional International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dimensional International has no effect on the direction of Intel i.e., Intel and Dimensional International go up and down completely randomly.

Pair Corralation between Intel and Dimensional International

Given the investment horizon of 90 days Intel is expected to generate 4.14 times more return on investment than Dimensional International. However, Intel is 4.14 times more volatile than Dimensional International Core. It trades about 0.12 of its potential returns per unit of risk. Dimensional International Core is currently generating about 0.2 per unit of risk. If you would invest  2,149  in Intel on May 19, 2025 and sell it today you would earn a total of  307.00  from holding Intel or generate 14.29% return on investment over 90 days.

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

Intel  vs.  Dimensional International Core

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

Dimensional International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Dimensional International Core are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Dimensional International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intel and Dimensional International

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

The idea behind Intel and Dimensional International Core 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.