Correlation Between Intel and Presidio Property

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

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

Diversification Opportunities for Intel and Presidio Property

0.75

Correlation Coefficient

Intel  Presidio Property

Poor diversification

The 3 months correlation between Intel and Presidio is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Presidio Property Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Presidio Property Trust 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 Presidio Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Presidio Property Trust has no effect on the direction of Intel i.e., Intel and Presidio Property go up and down completely randomly.

Pair Corralation between Intel and Presidio Property

Given the investment horizon of 90 days Intel is expected to generate 3.12 times more return on investment than Presidio Property. However, Intel is 3.12 times more volatile than Presidio Property Trust. It trades about 0.2 of its potential returns per unit of risk. Presidio Property Trust is currently generating about 0.16 per unit of risk. If you would invest  2,200  in Intel on July 7, 2025 and sell it today you would earn a total of  1,483  from holding Intel or generate 67.41% return on investment over 90 days.

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

Intel  vs.  Presidio Property Trust

Intel

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather conflicting basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Presidio Property Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Presidio Property Trust are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Presidio Property reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Presidio Property

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

The idea behind Intel and Presidio Property Trust 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.