Correlation Between Intel and ProShares Smart

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

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

Diversification Opportunities for Intel and ProShares Smart

0.77

Correlation Coefficient

Intel  ProShares Smart

Poor diversification

The 3 months correlation between Intel and ProShares is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ProShares Smart Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Smart Materials 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 ProShares Smart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Smart Materials has no effect on the direction of Intel i.e., Intel and ProShares Smart go up and down completely randomly.

Pair Corralation between Intel and ProShares Smart

Given the investment horizon of 90 days Intel is expected to generate 4.74 times less return on investment than ProShares Smart. In addition to that, Intel is 2.44 times more volatile than ProShares Smart Materials. It trades about 0.02 of its total potential returns per unit of risk. ProShares Smart Materials is currently generating about 0.22 per unit of volatility. If you would invest  2,735  in ProShares Smart Materials on April 28, 2025 and sell it today you would earn a total of  462.00  from holding ProShares Smart Materials or generate 16.89% return on investment over 90 days.

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

Intel  vs.  ProShares Smart Materials

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. 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.

ProShares Smart Materials

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Smart Materials are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, ProShares Smart unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and ProShares Smart

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

The idea behind Intel and ProShares Smart Materials 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.