Correlation Between Intel Corp and Murphy USA

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Can any of the company-specific risk be diversified away by investing in both Intel Corp and Murphy USA 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 Corp and Murphy USA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intel Corp and Murphy USA, you can compare the effects of market volatilities on Intel Corp and Murphy USA 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 Corp with a short position of Murphy USA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intel Corp and Murphy USA.

Diversification Opportunities for Intel Corp and Murphy USA

  Correlation Coefficient

Good diversification

The 3 months correlation between Intel and Murphy is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Intel Corp and Murphy USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Murphy USA and Intel Corp 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 Corp are associated (or correlated) with Murphy USA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Murphy USA has no effect on the direction of Intel Corp i.e., Intel Corp and Murphy USA go up and down completely randomly.

Pair Corralation between Intel Corp and Murphy USA

Given the investment horizon of 90 days Intel Corp is expected to under-perform the Murphy USA. In addition to that, Intel Corp is 1.05 times more volatile than Murphy USA. It trades about -0.09 of its total potential returns per unit of risk. Murphy USA is currently generating about 0.11 per unit of volatility. If you would invest  12,980  in Murphy USA on July 7, 2022 and sell it today you would earn a total of  15,071  from holding Murphy USA or generate 116.11% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
ValuesDaily Returns

Intel Corp  vs.  Murphy USA

 Performance (%) 
Intel Corp 
Intel Performance
0 of 100
Over the last 90 days Intel Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in November 2022. The current disturbance may also be a sign of long term up-swing for the company investors.

Intel Price Channel

Murphy USA 
Murphy Performance
8 of 100
Compared to the overall equity markets, risk-adjusted returns on investments in Murphy USA are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Murphy USA may actually be approaching a critical reversion point that can send shares even higher in November 2022.

Murphy Price Channel

Intel Corp and Murphy USA Volatility Contrast

   Predicted Return Density   

Pair Trading with Intel Corp and Murphy USA

The main advantage of trading using opposite Intel Corp and Murphy USA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intel Corp position performs unexpectedly, Murphy USA 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 Murphy USA will offset losses from the drop in Murphy USA's long position.
Intel Corp vs. Amazon Inc
The idea behind Intel Corp and Murphy USA 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.
Murphy USA vs. Best Buy Company
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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