Correlation Between Intel and Super Micro

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

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

Diversification Opportunities for Intel and Super Micro

0.57

Correlation Coefficient

Intel  Super Micro

Very weak diversification

The 3 months correlation between Intel and Super is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Super Micro Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Super Micro Computer 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 Super Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Super Micro Computer has no effect on the direction of Intel i.e., Intel and Super Micro go up and down completely randomly.

Pair Corralation between Intel and Super Micro

Given the investment horizon of 90 days Intel is expected to under-perform the Super Micro. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 1.63 times less risky than Super Micro. The stock trades about -0.01 of its potential returns per unit of risk. The Super Micro Computer is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  3,371  in Super Micro Computer on May 2, 2025 and sell it today you would earn a total of  2,700  from holding Super Micro Computer or generate 80.09% return on investment over 90 days.

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

Intel  vs.  Super Micro Computer

Intel

Risk-Adjusted Performance

Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Super Micro Computer

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Super Micro Computer are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, Super Micro demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Super Micro

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

The idea behind Intel and Super Micro Computer 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.