Correlation Between Intel and Intl Star

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

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

Diversification Opportunities for Intel and Intl Star

-0.75

Correlation Coefficient

Intel  Intl Star

Pay attention - limited upside

The 3 months correlation between Intel and Intl is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Intl Star in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intl Star 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 Intl Star. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intl Star has no effect on the direction of Intel i.e., Intel and Intl Star go up and down completely randomly.

Pair Corralation between Intel and Intl Star

Given the investment horizon of 90 days Intel is expected to generate 0.22 times more return on investment than Intl Star. However, Intel is 4.54 times less risky than Intl Star. It trades about 0.06 of its potential returns per unit of risk. Intl Star is currently generating about -0.08 per unit of risk. If you would invest  2,149  in Intel on April 24, 2025 and sell it today you would earn a total of  175.00  from holding Intel or generate 8.14% return on investment over 90 days.

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

Intel  vs.  Intl Star

Intel

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Intl Star

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intl Star has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in August 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intel and Intl Star

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

The idea behind Intel and Intl Star 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.