Correlation Between MSCI ACWI and Intel

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

By analyzing existing cross correlation between MSCI ACWI exAUCONSUMER and Intel, you can compare the effects of market volatilities on MSCI ACWI and Intel 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 MSCI ACWI with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of MSCI ACWI and Intel.

Diversification Opportunities for MSCI ACWI and Intel

0.51

Correlation Coefficient

MSCI ACWI  Intel

Very weak diversification

The 3 months correlation between MSCI and Intel is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding MSCI ACWI exAUCONSUMER and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and MSCI ACWI 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 MSCI ACWI exAUCONSUMER are associated (or correlated) with Intel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intel has no effect on the direction of MSCI ACWI i.e., MSCI ACWI and Intel go up and down completely randomly.

Pair Corralation between MSCI ACWI and Intel

Assuming the 90 days horizon MSCI ACWI exAUCONSUMER is expected to generate 0.07 times more return on investment than Intel. However, MSCI ACWI exAUCONSUMER is 15.36 times less risky than Intel. It trades about 0.17 of its potential returns per unit of risk. Intel is currently generating about -0.02 per unit of risk. If you would invest  2,482  in MSCI ACWI exAUCONSUMER on May 3, 2025 and sell it today you would earn a total of  48.00  from holding MSCI ACWI exAUCONSUMER or generate 1.93% return on investment over 90 days.

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

MSCI ACWI exAUCONSUMER  vs.  Intel

MSCI ACWI exAUCONSUMER

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI ACWI exAUCONSUMER are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MSCI ACWI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Intel

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intel has generated negative risk-adjusted returns adding no value to investors with long positions. 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.

Pair Trading with MSCI ACWI and Intel

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

The idea behind MSCI ACWI exAUCONSUMER and Intel 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.

Check out your portfolio center.

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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.