Correlation Between Intel and Sharp Corp

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

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

Diversification Opportunities for Intel and Sharp Corp

-0.5

Correlation Coefficient

Intel  Sharp Corp

Very good diversification

The 3 months correlation between Intel and Sharp is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Sharp Corp ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharp Corp ADR 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 Sharp Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharp Corp ADR has no effect on the direction of Intel i.e., Intel and Sharp Corp go up and down completely randomly.

Pair Corralation between Intel and Sharp Corp

Given the investment horizon of 90 days Intel is expected to generate 1.2 times more return on investment than Sharp Corp. However, Intel is 1.2 times more volatile than Sharp Corp ADR. It trades about 0.02 of its potential returns per unit of risk. Sharp Corp ADR is currently generating about -0.12 per unit of risk. If you would invest  2,034  in Intel on April 29, 2025 and sell it today you would earn a total of  36.00  from holding Intel or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	98.41%
Values	Daily Returns

Intel  vs.  Sharp Corp ADR

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.

Sharp Corp ADR

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sharp Corp ADR has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in August 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Intel and Sharp Corp

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

The idea behind Intel and Sharp Corp ADR 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.