Correlation Between Intel and US Treasury

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

By analyzing existing cross correlation between Intel and US Treasury 3, you can compare the effects of market volatilities on Intel and US Treasury 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 US Treasury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and US Treasury.

Diversification Opportunities for Intel and US Treasury

0.56

Correlation Coefficient

Intel  US Treasury

Very weak diversification

The 3 months correlation between Intel and UTRE is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Intel and US Treasury 3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on US Treasury 3 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 US Treasury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of US Treasury 3 has no effect on the direction of Intel i.e., Intel and US Treasury go up and down completely randomly.

Pair Corralation between Intel and US Treasury

Given the investment horizon of 90 days Intel is expected to generate 33.01 times more return on investment than US Treasury. However, Intel is 33.01 times more volatile than US Treasury 3. It trades about 0.21 of its potential returns per unit of risk. US Treasury 3 is currently generating about 0.18 per unit of risk. If you would invest  2,200  in Intel on July 5, 2025 and sell it today you would earn a total of  1,482  from holding Intel or generate 67.34% return on investment over 90 days.

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

Intel  vs.  US Treasury 3

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

US Treasury 3

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in US Treasury 3 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, US Treasury is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Intel and US Treasury

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

The idea behind Intel and US Treasury 3 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.