Correlation Between Intel and Hawk Systems

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

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

Diversification Opportunities for Intel and Hawk Systems

0.0

Correlation Coefficient

Intel  Hawk Systems

Pay attention - limited upside

The 3 months correlation between Intel and Hawk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Hawk Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hawk Systems 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 Hawk Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hawk Systems has no effect on the direction of Intel i.e., Intel and Hawk Systems go up and down completely randomly.

Pair Corralation between Intel and Hawk Systems

If you would invest  2,127  in Intel on May 20, 2025 and sell it today you would earn a total of  329.00  from holding Intel or generate 15.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Intel  vs.  Hawk Systems

Intel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 7 (%) 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.

Hawk Systems

Risk-Adjusted Performance

Weakest

Over the last 90 days Hawk Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Hawk Systems is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and Hawk Systems

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

The idea behind Intel and Hawk Systems 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 AI Portfolio Prophet module to use AI to generate optimal portfolios and find profitable investment opportunities.