Correlation Between Intel and WisdomTree Managed

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

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

Diversification Opportunities for Intel and WisdomTree Managed

0.49

Correlation Coefficient

Intel  WisdomTree Managed

Very weak diversification

The 3 months correlation between Intel and WisdomTree is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Intel and WisdomTree Managed Futures in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Managed 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 WisdomTree Managed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Managed has no effect on the direction of Intel i.e., Intel and WisdomTree Managed go up and down completely randomly.

Pair Corralation between Intel and WisdomTree Managed

Given the investment horizon of 90 days Intel is expected to generate 7.37 times more return on investment than WisdomTree Managed. However, Intel is 7.37 times more volatile than WisdomTree Managed Futures. It trades about 0.13 of its potential returns per unit of risk. WisdomTree Managed Futures is currently generating about 0.29 per unit of risk. If you would invest  1,884  in Intel on April 20, 2025 and sell it today you would earn a total of  426.00  from holding Intel or generate 22.61% return on investment over 90 days.

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

Intel  vs.  WisdomTree Managed Futures

Intel

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Intel exhibited solid returns over the last few months and may actually be approaching a breakup point.

WisdomTree Managed

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in WisdomTree Managed Futures are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile primary indicators, WisdomTree Managed may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Intel and WisdomTree Managed

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

The idea behind Intel and WisdomTree Managed Futures 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.