Correlation Between Intchains Group and Infineon Technologies
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Infineon Technologies 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 Infineon Technologies 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 Infineon Technologies AG, you can compare the effects of market volatilities on Intchains Group and Infineon Technologies 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 Infineon Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Infineon Technologies.
Diversification Opportunities for Intchains Group and Infineon Technologies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intchains and Infineon is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Infineon Technologies AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Infineon Technologies 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 Infineon Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Infineon Technologies has no effect on the direction of Intchains Group i.e., Intchains Group and Infineon Technologies go up and down completely randomly.
Pair Corralation between Intchains Group and Infineon Technologies
If you would invest 422.00 in Intchains Group Limited on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Intchains Group Limited or generate 2.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Intchains Group Limited vs. Infineon Technologies AG
Performance |
| Timeline |
| Intchains Group |
| Infineon Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Intchains Group and Infineon Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Infineon Technologies
The main advantage of trading using opposite Intchains Group and Infineon Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Infineon Technologies 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 Infineon Technologies will offset losses from the drop in Infineon Technologies' long position.The idea behind Intchains Group Limited and Infineon Technologies AG 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.| Infineon Technologies vs. Renesas Electronics | Infineon Technologies vs. Power Integrations | Infineon Technologies vs. Rohm Co Ltd | Infineon Technologies vs. MACOM Technology Solutions |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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