Correlation Between Intchains Group and Pixelworks
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Pixelworks 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 Pixelworks 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 Pixelworks, you can compare the effects of market volatilities on Intchains Group and Pixelworks 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 Pixelworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Pixelworks.
Diversification Opportunities for Intchains Group and Pixelworks
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intchains and Pixelworks is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Pixelworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pixelworks 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 Pixelworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pixelworks has no effect on the direction of Intchains Group i.e., Intchains Group and Pixelworks go up and down completely randomly.
Pair Corralation between Intchains Group and Pixelworks
Considering the 90-day investment horizon Intchains Group Limited is expected to generate 0.44 times more return on investment than Pixelworks. However, Intchains Group Limited is 2.25 times less risky than Pixelworks. It trades about 0.16 of its potential returns per unit of risk. Pixelworks is currently generating about 0.04 per unit of risk. If you would invest 414.00 in Intchains Group Limited on August 30, 2024 and sell it today you would earn a total of 36.00 from holding Intchains Group Limited or generate 8.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intchains Group Limited vs. Pixelworks
Performance |
| Timeline |
| Intchains Group |
| Pixelworks |
Intchains Group and Pixelworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Pixelworks
The main advantage of trading using opposite Intchains Group and Pixelworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Pixelworks 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 Pixelworks will offset losses from the drop in Pixelworks' long position.| Intchains Group vs. PepsiCo | Intchains Group vs. 51Talk Online Education | Intchains Group vs. China Tontine Wines | Intchains Group vs. Monster Beverage Corp |
| Pixelworks vs. First Solar | Pixelworks vs. Sunrun Inc | Pixelworks vs. Canadian Solar | Pixelworks vs. SolarEdge Technologies |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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