Correlation Between Intel and Growth Income

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

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

Diversification Opportunities for Intel and Growth Income

0.39

Correlation Coefficient

Intel  Growth Income

Weak diversification

The 3 months correlation between Intel and Growth is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Growth Income Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Growth Income 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 Growth Income. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Growth Income has no effect on the direction of Intel i.e., Intel and Growth Income go up and down completely randomly.

Pair Corralation between Intel and Growth Income

Given the investment horizon of 90 days Intel is expected to under-perform the Growth Income. In addition to that, Intel is 4.06 times more volatile than Growth Income Fund. It trades about -0.05 of its total potential returns per unit of risk. Growth Income Fund is currently generating about 0.17 per unit of volatility. If you would invest  3,226  in Growth Income Fund on May 10, 2025 and sell it today you would earn a total of  228.00  from holding Growth Income Fund or generate 7.07% return on investment over 90 days.

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

Intel  vs.  Growth Income Fund

Intel

Risk-Adjusted Performance

Weakest

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Growth Income

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Growth Income Fund are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak basic indicators, Growth Income may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Intel and Growth Income

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

The idea behind Intel and Growth Income Fund 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.