Correlation Between Intel and State Street

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

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

Diversification Opportunities for Intel and State Street

0.81

Correlation Coefficient

Intel  State Street

Very poor diversification

The 3 months correlation between Intel and State is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Intel and State Street Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Street Global 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 State Street. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Street Global has no effect on the direction of Intel i.e., Intel and State Street go up and down completely randomly.

Pair Corralation between Intel and State Street

Given the investment horizon of 90 days Intel is expected to generate 6.21 times more return on investment than State Street. However, Intel is 6.21 times more volatile than State Street Global. It trades about 0.21 of its potential returns per unit of risk. State Street Global is currently generating about 0.13 per unit of risk. If you would invest  2,421  in Intel on September 1, 2025 and sell it today you would earn a total of  1,635  from holding Intel or generate 67.53% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	98.44%
Values	Daily Returns

Intel  vs.  State Street Global

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 unsteady basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

State Street Global

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in State Street Global are ranked lower than 10 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical indicators, State Street 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 State Street

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

The idea behind Intel and State Street Global 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 Global Correlations module to find global opportunities by holding instruments from different markets.