Correlation Between Intel and CONSOLIDATED

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

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

Diversification Opportunities for Intel and CONSOLIDATED

0.01

Correlation Coefficient

Intel  CONSOLIDATED

Significant diversification

The 3 months correlation between Intel and CONSOLIDATED is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Intel and CONSOLIDATED EDISON N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CONSOLIDATED EDISON 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 CONSOLIDATED. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CONSOLIDATED EDISON has no effect on the direction of Intel i.e., Intel and CONSOLIDATED go up and down completely randomly.

Pair Corralation between Intel and CONSOLIDATED

Given the investment horizon of 90 days Intel is expected to generate 1.17 times more return on investment than CONSOLIDATED. However, Intel is 1.17 times more volatile than CONSOLIDATED EDISON N. It trades about 0.12 of its potential returns per unit of risk. CONSOLIDATED EDISON N is currently generating about -0.18 per unit of risk. If you would invest  2,055  in Intel on May 22, 2025 and sell it today you would earn a total of  476.00  from holding Intel or generate 23.16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	37.7%
Values	Daily Returns

Intel  vs.  CONSOLIDATED EDISON N

Intel

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

CONSOLIDATED EDISON

Risk-Adjusted Performance

Weakest

Over the last 90 days CONSOLIDATED EDISON N has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Bond's basic indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for CONSOLIDATED EDISON N investors.

Pair Trading with Intel and CONSOLIDATED

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

The idea behind Intel and CONSOLIDATED EDISON N 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 CEOs Directory module to screen CEOs from public companies around the world.