Correlation Between Intchains Group and Nordic Semiconductor
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Nordic Semiconductor 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 Nordic Semiconductor 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 Nordic Semiconductor ASA, you can compare the effects of market volatilities on Intchains Group and Nordic Semiconductor 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 Nordic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Nordic Semiconductor.
Diversification Opportunities for Intchains Group and Nordic Semiconductor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Intchains and Nordic is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Nordic Semiconductor ASA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nordic Semiconductor ASA 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 Nordic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nordic Semiconductor ASA has no effect on the direction of Intchains Group i.e., Intchains Group and Nordic Semiconductor go up and down completely randomly.
Pair Corralation between Intchains Group and Nordic Semiconductor
Considering the 90-day investment horizon Intchains Group Limited is expected to under-perform the Nordic Semiconductor. In addition to that, Intchains Group is 1.15 times more volatile than Nordic Semiconductor ASA. It trades about -0.01 of its total potential returns per unit of risk. Nordic Semiconductor ASA is currently generating about 0.01 per unit of volatility. If you would invest 1,175 in Nordic Semiconductor ASA on August 31, 2024 and sell it today you would lose (189.00) from holding Nordic Semiconductor ASA or give up 16.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.73% |
| Values | Daily Returns |
Intchains Group Limited vs. Nordic Semiconductor ASA
Performance |
| Timeline |
| Intchains Group |
| Nordic Semiconductor ASA |
Intchains Group and Nordic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Nordic Semiconductor
The main advantage of trading using opposite Intchains Group and Nordic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Nordic Semiconductor 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 Nordic Semiconductor will offset losses from the drop in Nordic Semiconductor's long position.| Intchains Group vs. Sun Country Airlines | Intchains Group vs. Verra Mobility Corp | Intchains Group vs. Saia Inc | Intchains Group vs. Japan Tobacco ADR |
| Nordic Semiconductor vs. Power Integrations | Nordic Semiconductor vs. MACOM Technology Solutions | Nordic Semiconductor vs. Intchains Group Limited | Nordic Semiconductor vs. Vishay Intertechnology |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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