Correlation Between Gap, and Intchains Group
Can any of the company-specific risk be diversified away by investing in both Gap, 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 Gap, and Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gap, and Intchains Group Limited, you can compare the effects of market volatilities on Gap, 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 Gap, with a short position of Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gap, and Intchains Group.
Diversification Opportunities for Gap, and Intchains Group
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gap, and Intchains is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding The Gap, and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group and Gap, 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 The Gap, 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 Gap, i.e., Gap, and Intchains Group go up and down completely randomly.
Pair Corralation between Gap, and Intchains Group
Considering the 90-day investment horizon The Gap, is expected to generate 0.39 times more return on investment than Intchains Group. However, The Gap, is 2.57 times less risky than Intchains Group. It trades about 0.05 of its potential returns per unit of risk. Intchains Group Limited is currently generating about -0.08 per unit of risk. If you would invest 2,266 in The Gap, on September 2, 2024 and sell it today you would earn a total of 159.00 from holding The Gap, or generate 7.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Gap, vs. Intchains Group Limited
Performance |
| Timeline |
| Gap, |
| Intchains Group |
Gap, and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gap, and Intchains Group
The main advantage of trading using opposite Gap, and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gap, 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.| Gap, vs. Boot Barn Holdings | Gap, vs. BJs Restaurants | Gap, vs. The Cheesecake Factory | Gap, vs. GEN Restaurant Group, |
| Intchains Group vs. The Gap, | Intchains Group vs. BBB Foods | Intchains Group vs. SunLink Health Systems | Intchains Group vs. Transocean |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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