Correlation Between Intel and Lsv Value

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

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

Diversification Opportunities for Intel and Lsv Value

0.7

Correlation Coefficient

Intel  Lsv Value

Poor diversification

The 3 months correlation between Intel and Lsv is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Lsv Value Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lsv Value Equity 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 Lsv Value. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lsv Value Equity has no effect on the direction of Intel i.e., Intel and Lsv Value go up and down completely randomly.

Pair Corralation between Intel and Lsv Value

Given the investment horizon of 90 days Intel is expected to generate 5.65 times more return on investment than Lsv Value. However, Intel is 5.65 times more volatile than Lsv Value Equity. It trades about 0.24 of its potential returns per unit of risk. Lsv Value Equity is currently generating about 0.1 per unit of risk. If you would invest  2,070  in Intel on July 25, 2025 and sell it today you would earn a total of  1,622  from holding Intel or generate 78.36% return on investment over 90 days.

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

Intel  vs.  Lsv Value Equity

Intel

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Lsv Value Equity

Risk-Adjusted Performance

Fair

Over the last 90 days Lsv Value Equity has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong technical and fundamental indicators, Lsv Value 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 Lsv Value

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

The idea behind Intel and Lsv Value Equity 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.