Correlation Between Intchains Group and Kulicke
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Kulicke 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 Kulicke 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 Kulicke and Soffa, you can compare the effects of market volatilities on Intchains Group and Kulicke 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 Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Kulicke.
Diversification Opportunities for Intchains Group and Kulicke
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Intchains and Kulicke is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa 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 Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of Intchains Group i.e., Intchains Group and Kulicke go up and down completely randomly.
Pair Corralation between Intchains Group and Kulicke
Considering the 90-day investment horizon Intchains Group is expected to generate 3.6 times less return on investment than Kulicke. In addition to that, Intchains Group is 1.01 times more volatile than Kulicke and Soffa. It trades about 0.04 of its total potential returns per unit of risk. Kulicke and Soffa is currently generating about 0.15 per unit of volatility. If you would invest 4,613 in Kulicke and Soffa on August 27, 2024 and sell it today you would earn a total of 304.00 from holding Kulicke and Soffa or generate 6.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intchains Group Limited vs. Kulicke and Soffa
Performance |
| Timeline |
| Intchains Group |
| Kulicke and Soffa |
Intchains Group and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Kulicke
The main advantage of trading using opposite Intchains Group and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Kulicke 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 Kulicke will offset losses from the drop in Kulicke's long position.The idea behind Intchains Group Limited and Kulicke and Soffa 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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