Correlation Between Intel and Sprott Physical

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

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

Diversification Opportunities for Intel and Sprott Physical

0.41

Correlation Coefficient

Intel  Sprott Physical

Very weak diversification

The 3 months correlation between Intel and Sprott is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Sprott Physical Platinum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprott Physical Platinum 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 Sprott Physical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprott Physical Platinum has no effect on the direction of Intel i.e., Intel and Sprott Physical go up and down completely randomly.

Pair Corralation between Intel and Sprott Physical

Given the investment horizon of 90 days Intel is expected to under-perform the Sprott Physical. In addition to that, Intel is 1.35 times more volatile than Sprott Physical Platinum. It trades about -0.05 of its total potential returns per unit of risk. Sprott Physical Platinum is currently generating about 0.18 per unit of volatility. If you would invest  950.00  in Sprott Physical Platinum on May 12, 2025 and sell it today you would earn a total of  236.00  from holding Sprott Physical Platinum or generate 24.84% return on investment over 90 days.

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

Intel  vs.  Sprott Physical Platinum

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.

Sprott Physical Platinum

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Sprott Physical Platinum are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain basic indicators, Sprott Physical reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Sprott Physical

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

The idea behind Intel and Sprott Physical Platinum 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.

Check out your portfolio center.

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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.