Correlation Between Intel and Vext Science

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

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

Diversification Opportunities for Intel and Vext Science

0.13

Correlation Coefficient

Intel  Vext Science

Average diversification

The 3 months correlation between Intel and Vext is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Vext Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vext Science 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 Vext Science. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vext Science has no effect on the direction of Intel i.e., Intel and Vext Science go up and down completely randomly.

Pair Corralation between Intel and Vext Science

Given the investment horizon of 90 days Intel is expected to under-perform the Vext Science. But the stock apears to be less risky and, when comparing its historical volatility, Intel is 2.39 times less risky than Vext Science. The stock trades about -0.05 of its potential returns per unit of risk. The Vext Science is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest  7.55  in Vext Science on May 10, 2025 and sell it today you would earn a total of  8.45  from holding Vext Science or generate 111.92% return on investment over 90 days.

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

Intel  vs.  Vext Science

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 conflicting 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.

Vext Science

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vext Science are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Vext Science reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and Vext Science

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

The idea behind Intel and Vext Science 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.