Correlation Between Intchains Group and Arteris
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Arteris 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 Intchains Group and Arteris into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Intchains Group Limited and Arteris, you can compare the effects of market volatilities on Intchains Group and Arteris 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 Intchains Group with a short position of Arteris. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Arteris.
Diversification Opportunities for Intchains Group and Arteris
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Intchains and Arteris is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Arteris in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arteris and Intchains Group 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 Intchains Group Limited are associated (or correlated) with Arteris. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arteris has no effect on the direction of Intchains Group i.e., Intchains Group and Arteris go up and down completely randomly.
Pair Corralation between Intchains Group and Arteris
Considering the 90-day investment horizon Intchains Group is expected to generate 22.95 times less return on investment than Arteris. But when comparing it to its historical volatility, Intchains Group Limited is 2.11 times less risky than Arteris. It trades about 0.02 of its potential returns per unit of risk. Arteris is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 711.00 in Arteris on August 29, 2024 and sell it today you would earn a total of 162.00 from holding Arteris or generate 22.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intchains Group Limited vs. Arteris
Performance |
| Timeline |
| Intchains Group |
| Arteris |
Intchains Group and Arteris Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Arteris
The main advantage of trading using opposite Intchains Group and Arteris positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Arteris 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 Arteris will offset losses from the drop in Arteris' long position.The idea behind Intchains Group Limited and Arteris 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.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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |