Correlation Between Intel and ROHM Co

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

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

Diversification Opportunities for Intel and ROHM Co

0.53

Correlation Coefficient

Intel  ROHM Co

Very weak diversification

The 3 months correlation between Intel and ROHM is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Intel and ROHM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ROHM Co 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 ROHM Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ROHM Co has no effect on the direction of Intel i.e., Intel and ROHM Co go up and down completely randomly.

Pair Corralation between Intel and ROHM Co

Assuming the 90 days trading horizon Intel is expected to generate 2.08 times less return on investment than ROHM Co. In addition to that, Intel is 1.17 times more volatile than ROHM Co. It trades about 0.11 of its total potential returns per unit of risk. ROHM Co is currently generating about 0.26 per unit of volatility. If you would invest  742.00  in ROHM Co on April 22, 2025 and sell it today you would earn a total of  333.00  from holding ROHM Co or generate 44.88% return on investment over 90 days.

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

Intel  vs.  ROHM Co

Intel

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain essential indicators, Intel unveiled solid returns over the last few months and may actually be approaching a breakup point.

ROHM Co

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in ROHM Co are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, ROHM Co reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intel and ROHM Co

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

The idea behind Intel and ROHM Co 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.