Correlation Between Intel and Value Exchange

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

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

Diversification Opportunities for Intel and Value Exchange

-0.24

Correlation Coefficient

Intel  Value Exchange

Very good diversification

The 3 months correlation between Intel and Value is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Value Exchange International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Value Exchange Inter 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 Value Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Value Exchange Inter has no effect on the direction of Intel i.e., Intel and Value Exchange go up and down completely randomly.

Pair Corralation between Intel and Value Exchange

Given the investment horizon of 90 days Intel is expected to generate 0.33 times more return on investment than Value Exchange. However, Intel is 3.02 times less risky than Value Exchange. It trades about 0.02 of its potential returns per unit of risk. Value Exchange International is currently generating about -0.06 per unit of risk. If you would invest  2,034  in Intel on April 29, 2025 and sell it today you would earn a total of  36.00  from holding Intel or generate 1.77% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

Intel  vs.  Value Exchange International

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.

Value Exchange Inter

Risk-Adjusted Performance

Very Weak

Over the last 90 days Value Exchange International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with Intel and Value Exchange

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

The idea behind Intel and Value Exchange International 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.