Correlation Between Intel and WisdomTree MidCap
Can any of the company-specific risk be diversified away by investing in both Intel and WisdomTree MidCap 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 WisdomTree MidCap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel and WisdomTree MidCap Dividend, you can compare the effects of market volatilities on Intel and WisdomTree MidCap 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 WisdomTree MidCap. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel and WisdomTree MidCap.
Diversification Opportunities for Intel and WisdomTree MidCap
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Intel and WisdomTree is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Intel and WisdomTree MidCap Dividend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree MidCap 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 WisdomTree MidCap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree MidCap has no effect on the direction of Intel i.e., Intel and WisdomTree MidCap go up and down completely randomly.
Pair Corralation between Intel and WisdomTree MidCap
Given the investment horizon of 90 days Intel is expected to generate 5.67 times more return on investment than WisdomTree MidCap. However, Intel is 5.67 times more volatile than WisdomTree MidCap Dividend. It trades about 0.12 of its potential returns per unit of risk. WisdomTree MidCap Dividend is currently generating about 0.19 per unit of risk. If you would invest 3,788 in Intel on November 11, 2025 and sell it today you would earn a total of 1,236 from holding Intel or generate 32.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intel vs. WisdomTree MidCap Dividend
Performance |
| Timeline |
| Intel |
| WisdomTree MidCap |
Intel and WisdomTree MidCap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intel and WisdomTree MidCap
The main advantage of trading using opposite Intel and WisdomTree MidCap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel position performs unexpectedly, WisdomTree MidCap 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 WisdomTree MidCap will offset losses from the drop in WisdomTree MidCap's long position.The idea behind Intel and WisdomTree MidCap Dividend 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.| WisdomTree MidCap vs. WisdomTree Emerging Markets | WisdomTree MidCap vs. WisdomTree Japan Hedged | WisdomTree MidCap vs. iShares Financials ETF | WisdomTree MidCap vs. iShares Exponential Technologies |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |