Correlation Between Intel and ProShares Nasdaq

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

By analyzing existing cross correlation between Intel and ProShares Nasdaq 100 Dynamic, you can compare the effects of market volatilities on Intel and ProShares Nasdaq 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 Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and ProShares Nasdaq.

Diversification Opportunities for Intel and ProShares Nasdaq

0.26

Correlation Coefficient

Intel  ProShares Nasdaq

Modest diversification

The 3 months correlation between Intel and ProShares is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProShares Nasdaq 100 Dynamic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Nasdaq 100 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 Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Nasdaq 100 has no effect on the direction of Intel i.e., Intel and ProShares Nasdaq go up and down completely randomly.

Pair Corralation between Intel and ProShares Nasdaq

Given the investment horizon of 90 days Intel is expected to generate 15.2 times more return on investment than ProShares Nasdaq. However, Intel is 15.2 times more volatile than ProShares Nasdaq 100 Dynamic. It trades about 0.03 of its potential returns per unit of risk. ProShares Nasdaq 100 Dynamic is currently generating about 0.06 per unit of risk. If you would invest  1,998  in Intel on May 1, 2025 and sell it today you would earn a total of  43.00  from holding Intel or generate 2.15% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	37.7%
Values	Daily Returns

Intel  vs.  ProShares Nasdaq 100 Dynamic

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) 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.

ProShares Nasdaq 100

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Nasdaq 100 Dynamic are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong fundamental drivers, ProShares Nasdaq 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 Nasdaq

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

The idea behind Intel and ProShares Nasdaq 100 Dynamic 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.