Correlation Between Southwest Gas and Intel
Can any of the company-specific risk be diversified away by investing in both Southwest Gas 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 Southwest Gas and Intel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Southwest Gas Holdings and Intel, you can compare the effects of market volatilities on Southwest Gas 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 Southwest Gas with a short position of Intel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Southwest Gas and Intel.
Diversification Opportunities for Southwest Gas and Intel
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Southwest and Intel is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Southwest Gas Holdings and Intel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intel and Southwest Gas 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 Southwest Gas Holdings 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 Southwest Gas i.e., Southwest Gas and Intel go up and down completely randomly.
Pair Corralation between Southwest Gas and Intel
Considering the 90-day investment horizon Southwest Gas is expected to generate 87.43 times less return on investment than Intel. But when comparing it to its historical volatility, Southwest Gas Holdings is 4.34 times less risky than Intel. It trades about 0.01 of its potential returns per unit of risk. Intel is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 2,326 in Intel on July 20, 2025 and sell it today you would earn a total of 1,375 from holding Intel or generate 59.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Southwest Gas Holdings vs. Intel
Performance |
| Timeline |
| Southwest Gas Holdings |
| Intel |
Southwest Gas and Intel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Southwest Gas and Intel
The main advantage of trading using opposite Southwest Gas and Intel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Southwest Gas 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.| Southwest Gas vs. Brookfield Infrastructure Corp | Southwest Gas vs. Spire Inc | Southwest Gas vs. One Gas | Southwest Gas vs. TXNM Energy, |
| Intel vs. Digi Power X | Intel vs. Japan Airlines Ltd | Intel vs. Amtech Systems | Intel vs. Courtside Group, Common |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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