Correlation Between Intel and Main International

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

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

Diversification Opportunities for Intel and Main International

0.53

Correlation Coefficient

Intel  Main International

Very weak diversification

The 3 months correlation between Intel and Main is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Main International ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Main International ETF 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 Main International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Main International ETF has no effect on the direction of Intel i.e., Intel and Main International go up and down completely randomly.

Pair Corralation between Intel and Main International

Given the investment horizon of 90 days Intel is expected to under-perform the Main International. In addition to that, Intel is 4.53 times more volatile than Main International ETF. It trades about -0.01 of its total potential returns per unit of risk. Main International ETF is currently generating about 0.17 per unit of volatility. If you would invest  2,422  in Main International ETF on May 2, 2025 and sell it today you would earn a total of  157.30  from holding Main International ETF or generate 6.49% return on investment over 90 days.

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

Intel  vs.  Main International ETF

Intel

Risk-Adjusted Performance

Weak

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 latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Main International ETF

Risk-Adjusted Performance

Solid

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

Pair Trading with Intel and Main International

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

The idea behind Intel and Main International ETF 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.