Correlation Between Cohu and Intchains Group
Can any of the company-specific risk be diversified away by investing in both Cohu and Intchains Group 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 Cohu and Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cohu Inc and Intchains Group Limited, you can compare the effects of market volatilities on Cohu and Intchains Group 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 Cohu with a short position of Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cohu and Intchains Group.
Diversification Opportunities for Cohu and Intchains Group
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cohu and Intchains is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Cohu Inc and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group and Cohu 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 Cohu Inc are associated (or correlated) with Intchains Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intchains Group has no effect on the direction of Cohu i.e., Cohu and Intchains Group go up and down completely randomly.
Pair Corralation between Cohu and Intchains Group
Given the investment horizon of 90 days Cohu Inc is expected to generate 0.34 times more return on investment than Intchains Group. However, Cohu Inc is 2.94 times less risky than Intchains Group. It trades about 0.0 of its potential returns per unit of risk. Intchains Group Limited is currently generating about -0.01 per unit of risk. If you would invest 2,636 in Cohu Inc on August 29, 2024 and sell it today you would lose (51.00) from holding Cohu Inc or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cohu Inc vs. Intchains Group Limited
Performance |
| Timeline |
| Cohu Inc |
| Intchains Group |
Cohu and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cohu and Intchains Group
The main advantage of trading using opposite Cohu and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cohu position performs unexpectedly, Intchains Group 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 Intchains Group will offset losses from the drop in Intchains Group's long position.| Cohu vs. Onto Innovation | Cohu vs. Photronics | Cohu vs. Ultra Clean Holdings | Cohu vs. Axcelis Technologies |
| Intchains Group vs. ABIVAX Socit Anonyme | Intchains Group vs. Morningstar Unconstrained Allocation | Intchains Group vs. SPACE | Intchains Group vs. Knife River |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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