Correlation Between Intchains Group and Radware
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Radware 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 Radware 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 Radware, you can compare the effects of market volatilities on Intchains Group and Radware 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 Radware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Radware.
Diversification Opportunities for Intchains Group and Radware
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Intchains and Radware is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Radware in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radware 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 Radware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radware has no effect on the direction of Intchains Group i.e., Intchains Group and Radware go up and down completely randomly.
Pair Corralation between Intchains Group and Radware
Considering the 90-day investment horizon Intchains Group Limited is expected to under-perform the Radware. In addition to that, Intchains Group is 4.21 times more volatile than Radware. It trades about 0.0 of its total potential returns per unit of risk. Radware is currently generating about 0.05 per unit of volatility. If you would invest 2,167 in Radware on August 28, 2024 and sell it today you would earn a total of 121.00 from holding Radware or generate 5.58% 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. Radware
Performance |
| Timeline |
| Intchains Group |
| Radware |
Intchains Group and Radware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Radware
The main advantage of trading using opposite Intchains Group and Radware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Radware 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 Radware will offset losses from the drop in Radware's long position.The idea behind Intchains Group Limited and Radware 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.| Radware vs. Evertec | Radware vs. Consensus Cloud Solutions | Radware vs. Global Blue Group | Radware vs. CSG Systems International |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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