Correlation Between Intel and ProConcept Marketing

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

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

Diversification Opportunities for Intel and ProConcept Marketing

-0.34

Correlation Coefficient

Intel  ProConcept Marketing

Very good diversification

The 3 months correlation between Intel and ProConcept is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProConcept Marketing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProConcept Marketing 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 ProConcept Marketing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProConcept Marketing has no effect on the direction of Intel i.e., Intel and ProConcept Marketing go up and down completely randomly.

Pair Corralation between Intel and ProConcept Marketing

Given the investment horizon of 90 days Intel is expected to generate 4.59 times less return on investment than ProConcept Marketing. But when comparing it to its historical volatility, Intel is 9.36 times less risky than ProConcept Marketing. It trades about 0.02 of its potential returns per unit of risk. ProConcept Marketing Group is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  6.74  in ProConcept Marketing Group on April 28, 2025 and sell it today you would lose (5.64) from holding ProConcept Marketing Group or give up 83.68% of portfolio value over 90 days.

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

Intel  vs.  ProConcept Marketing Group

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

ProConcept Marketing

Risk-Adjusted Performance

Very Weak

Over the last 90 days ProConcept Marketing Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very weak basic indicators, ProConcept Marketing displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and ProConcept Marketing

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

The idea behind Intel and ProConcept Marketing Group 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.