Correlation Between Intel and Skyworks Solutions

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

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

Diversification Opportunities for Intel and Skyworks Solutions

0.69

Correlation Coefficient

Intel  Skyworks Solutions

Poor diversification

The 3 months correlation between Intel and Skyworks is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Skyworks Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Skyworks Solutions 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 Skyworks Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Skyworks Solutions has no effect on the direction of Intel i.e., Intel and Skyworks Solutions go up and down completely randomly.

Pair Corralation between Intel and Skyworks Solutions

Given the investment horizon of 90 days Intel is expected to under-perform the Skyworks Solutions. In addition to that, Intel is 1.59 times more volatile than Skyworks Solutions. It trades about -0.02 of its total potential returns per unit of risk. Skyworks Solutions is currently generating about 0.05 per unit of volatility. If you would invest  6,548  in Skyworks Solutions on May 3, 2025 and sell it today you would earn a total of  306.00  from holding Skyworks Solutions or generate 4.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.39%
Values	Daily Returns

Intel  vs.  Skyworks Solutions

Intel

Risk-Adjusted Performance

Very 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.

Skyworks Solutions

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Skyworks Solutions are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable forward-looking signals, Skyworks Solutions is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Intel and Skyworks Solutions

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

The idea behind Intel and Skyworks Solutions 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.