Correlation Between Intchains Group and Atomera
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Atomera 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 Atomera 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 Atomera, you can compare the effects of market volatilities on Intchains Group and Atomera 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 Atomera. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Atomera.
Diversification Opportunities for Intchains Group and Atomera
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intchains and Atomera is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Atomera in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Atomera 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 Atomera. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Atomera has no effect on the direction of Intchains Group i.e., Intchains Group and Atomera go up and down completely randomly.
Pair Corralation between Intchains Group and Atomera
Considering the 90-day investment horizon Intchains Group Limited is expected to under-perform the Atomera. In addition to that, Intchains Group is 1.07 times more volatile than Atomera. It trades about -0.03 of its total potential returns per unit of risk. Atomera is currently generating about 0.01 per unit of volatility. If you would invest 786.00 in Atomera on August 28, 2024 and sell it today you would lose (116.00) from holding Atomera or give up 14.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intchains Group Limited vs. Atomera
Performance |
| Timeline |
| Intchains Group |
| Atomera |
Intchains Group and Atomera Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Atomera
The main advantage of trading using opposite Intchains Group and Atomera positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Atomera 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 Atomera will offset losses from the drop in Atomera's long position.The idea behind Intchains Group Limited and Atomera 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.| Atomera vs. Axcelis Technologies | Atomera vs. inTest | Atomera vs. Lam Research Corp | Atomera vs. Photronics |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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