Correlation Between Intel and IShares MSCI

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

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

Diversification Opportunities for Intel and IShares MSCI

-0.5

Correlation Coefficient

Intel  IShares MSCI

Very good diversification

The 3 months correlation between Intel and IShares is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intel and IShares MSCI World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IShares MSCI 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 IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IShares MSCI World has no effect on the direction of Intel i.e., Intel and IShares MSCI go up and down completely randomly.

Pair Corralation between Intel and IShares MSCI

If you would invest  2,077  in Intel on September 18, 2024 and sell it today you would earn a total of  6.00  from holding Intel or generate 0.29% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	1.59%
Values	Daily Returns

Intel  vs.  IShares MSCI World

Intel

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 1 (%) 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 current stock price tumult, may contribute to shorter-term losses for the shareholders.

IShares MSCI World

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IShares MSCI World has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable forward indicators, IShares MSCI is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Intel and IShares MSCI

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

The idea behind Intel and IShares MSCI 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.