Correlation Between Intel and WisdomTree SmallCap

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

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

Diversification Opportunities for Intel and WisdomTree SmallCap

0.61

Correlation Coefficient

Intel  WisdomTree SmallCap

Poor diversification

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

Pair Corralation between Intel and WisdomTree SmallCap

Given the investment horizon of 90 days Intel is expected to under-perform the WisdomTree SmallCap. In addition to that, Intel is 2.09 times more volatile than WisdomTree SmallCap Quality. It trades about -0.01 of its total potential returns per unit of risk. WisdomTree SmallCap Quality is currently generating about 0.1 per unit of volatility. If you would invest  4,371  in WisdomTree SmallCap Quality on May 7, 2025 and sell it today you would earn a total of  356.00  from holding WisdomTree SmallCap Quality or generate 8.14% return on investment over 90 days.

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

Intel  vs.  WisdomTree SmallCap Quality

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 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.

WisdomTree SmallCap

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree SmallCap Quality are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, WisdomTree SmallCap may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intel and WisdomTree SmallCap

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

The idea behind Intel and WisdomTree SmallCap Quality 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.