Correlation Between Intel and ProShares Short

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

By analyzing existing cross correlation between Intel and ProShares Short MidCap400, you can compare the effects of market volatilities on Intel and ProShares Short 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 ProShares Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ProShares Short.

Diversification Opportunities for Intel and ProShares Short

-0.54

Correlation Coefficient

Intel  ProShares Short

Excellent diversification

The 3 months correlation between Intel and ProShares is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProShares Short MidCap400 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Short MidCap400 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 ProShares Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Short MidCap400 has no effect on the direction of Intel i.e., Intel and ProShares Short go up and down completely randomly.

Pair Corralation between Intel and ProShares Short

Given the investment horizon of 90 days Intel is expected to under-perform the ProShares Short. In addition to that, Intel is 3.19 times more volatile than ProShares Short MidCap400. It trades about -0.05 of its total potential returns per unit of risk. ProShares Short MidCap400 is currently generating about -0.02 per unit of volatility. If you would invest  1,901  in ProShares Short MidCap400 on May 12, 2025 and sell it today you would lose (27.00) from holding ProShares Short MidCap400 or give up 1.42% of portfolio value over 90 days.

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

Intel  vs.  ProShares Short MidCap400

Intel

Risk-Adjusted Performance

Weakest

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

ProShares Short MidCap400

Risk-Adjusted Performance

Weakest

Over the last 90 days ProShares Short MidCap400 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, ProShares Short 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 ProShares Short

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

The idea behind Intel and ProShares Short MidCap400 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.