Correlation Between Intel and Waters

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

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

Diversification Opportunities for Intel and Waters

-0.06

Correlation Coefficient

Intel  Waters

Good diversification

The 3 months correlation between Intel and Waters is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Waters in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Waters 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 Waters. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Waters has no effect on the direction of Intel i.e., Intel and Waters go up and down completely randomly.

Pair Corralation between Intel and Waters

Given the investment horizon of 90 days Intel is expected to generate 1.65 times more return on investment than Waters. However, Intel is 1.65 times more volatile than Waters. It trades about 0.0 of its potential returns per unit of risk. Waters is currently generating about -0.01 per unit of risk. If you would invest  4,567  in Intel on June 30, 2025 and sell it today you would lose (1,017) from holding Intel or give up 22.27% of portfolio value over 90 days.

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

Intel  vs.  Waters

Intel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

Waters

Risk-Adjusted Performance

Weakest

Over the last 90 days Waters has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in October 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Intel and Waters

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

The idea behind Intel and Waters 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.