Correlation Between Intel and Franklin California

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

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

Diversification Opportunities for Intel and Franklin California

0.82

Correlation Coefficient

Intel  Franklin California

Very poor diversification

The 3 months correlation between Intel and Franklin is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Intel and Franklin California High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin California High 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 Franklin California. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin California High has no effect on the direction of Intel i.e., Intel and Franklin California go up and down completely randomly.

Pair Corralation between Intel and Franklin California

Given the investment horizon of 90 days Intel is expected to generate 22.3 times more return on investment than Franklin California. However, Intel is 22.3 times more volatile than Franklin California High. It trades about 0.18 of its potential returns per unit of risk. Franklin California High is currently generating about 0.36 per unit of risk. If you would invest  2,435  in Intel on August 29, 2025 and sell it today you would earn a total of  1,246  from holding Intel or generate 51.17% return on investment over 90 days.

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

Intel  vs.  Franklin California High

Intel

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Intel are ranked lower than 14 (%) 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.

Franklin California High

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Franklin California High are ranked lower than 28 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Franklin California is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Intel and Franklin California

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

The idea behind Intel and Franklin California High 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 Commodity Directory module to find actively traded commodities issued by global exchanges.