Correlation Between Apple and Intel

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

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

Diversification Opportunities for Apple and Intel

0.29

Correlation Coefficient

Apple  Intel

Modest diversification

The 3 months correlation between Apple and Intel is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Apple 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 Apple Inc 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 Apple i.e., Apple and Intel go up and down completely randomly.

Pair Corralation between Apple and Intel

Assuming the 90 days trading horizon Apple is expected to generate 10.51 times less return on investment than Intel. But when comparing it to its historical volatility, Apple Inc is 1.59 times less risky than Intel. It trades about 0.01 of its potential returns per unit of risk. Intel is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  1,838  in Intel on April 24, 2025 and sell it today you would earn a total of  156.00  from holding Intel or generate 8.49% return on investment over 90 days.

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

Apple Inc  vs.  Intel

Apple Inc

Risk-Adjusted Performance

Weak

Over the last 90 days Apple Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, Apple is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Intel

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak essential indicators, Intel may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Apple and Intel

The main advantage of trading using opposite Apple and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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 Apple Inc 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.

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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.