Correlation Between Intel and Plastic2Oil

Can any of the company-specific risk be diversified away by investing in both Intel and Plastic2Oil 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 Plastic2Oil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Intel and Plastic2Oil, you can compare the effects of market volatilities on Intel and Plastic2Oil 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 Plastic2Oil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and Plastic2Oil.

Diversification Opportunities for Intel and Plastic2Oil

0.0

Correlation Coefficient

Intel  Plastic2Oil

Pay attention - limited upside

The 3 months correlation between Intel and Plastic2Oil is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Plastic2Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Plastic2Oil 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 Plastic2Oil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Plastic2Oil has no effect on the direction of Intel i.e., Intel and Plastic2Oil go up and down completely randomly.

Pair Corralation between Intel and Plastic2Oil

If you would invest  2,326  in Intel on July 21, 2025 and sell it today you would earn a total of  1,375  from holding Intel or generate 59.11% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.48%
Values	Daily Returns

Intel  vs.  Plastic2Oil

Intel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Plastic2Oil

Risk-Adjusted Performance

Weakest

Over the last 90 days Plastic2Oil has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Plastic2Oil is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Intel and Plastic2Oil

The main advantage of trading using opposite Intel and Plastic2Oil positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, Plastic2Oil 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 Plastic2Oil will offset losses from the drop in Plastic2Oil's long position.

The idea behind Intel and Plastic2Oil 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.