Correlation Between Intel and Vanguard Total

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

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

Diversification Opportunities for Intel and Vanguard Total

0.66

Correlation Coefficient

Intel  Vanguard Total

Poor diversification

The 3 months correlation between Intel and Vanguard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Vanguard Total World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanguard Total World 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 Vanguard Total. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanguard Total World has no effect on the direction of Intel i.e., Intel and Vanguard Total go up and down completely randomly.

Pair Corralation between Intel and Vanguard Total

Given the investment horizon of 90 days Intel is expected to generate 2.65 times less return on investment than Vanguard Total. In addition to that, Intel is 4.26 times more volatile than Vanguard Total World. It trades about 0.03 of its total potential returns per unit of risk. Vanguard Total World is currently generating about 0.29 per unit of volatility. If you would invest  11,646  in Vanguard Total World on May 1, 2025 and sell it today you would earn a total of  1,462  from holding Vanguard Total World or generate 12.55% return on investment over 90 days.

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

Intel  vs.  Vanguard Total World

Intel

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 2 (%) 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.

Vanguard Total World

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vanguard Total World are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vanguard Total may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Intel and Vanguard Total

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

The idea behind Intel and Vanguard Total World 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.