Correlation Between Intel and Goldman Sachs

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

By analyzing existing cross correlation between Intel and Goldman Sachs Nasdaq 100, you can compare the effects of market volatilities on Intel and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Goldman Sachs.

Diversification Opportunities for Intel and Goldman Sachs

0.87

Correlation Coefficient

Intel  Goldman Sachs

Very poor diversification

The 3 months correlation between Intel and Goldman is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Goldman Sachs Nasdaq 100 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Nasdaq 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Nasdaq has no effect on the direction of Intel i.e., Intel and Goldman Sachs go up and down completely randomly.

Pair Corralation between Intel and Goldman Sachs

Given the investment horizon of 90 days Intel is expected to generate 5.12 times more return on investment than Goldman Sachs. However, Intel is 5.12 times more volatile than Goldman Sachs Nasdaq 100. It trades about 0.2 of its potential returns per unit of risk. Goldman Sachs Nasdaq 100 is currently generating about 0.13 per unit of risk. If you would invest  2,448  in Intel on September 8, 2025 and sell it today you would earn a total of  1,693  from holding Intel or generate 69.16% return on investment over 90 days.

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

Intel  vs.  Goldman Sachs Nasdaq 100

Intel

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Goldman Sachs Nasdaq

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Nasdaq 100 are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak forward indicators, Goldman Sachs may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Intel and Goldman Sachs

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

The idea behind Intel and Goldman Sachs Nasdaq 100 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..