Correlation Between Intchains Group and Semilux International
Can any of the company-specific risk be diversified away by investing in both Intchains Group and Semilux International 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 Semilux International 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 Semilux International Ltd, you can compare the effects of market volatilities on Intchains Group and Semilux International 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 Semilux International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Semilux International.
Diversification Opportunities for Intchains Group and Semilux International
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Intchains and Semilux is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Semilux International Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Semilux International 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 Semilux International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Semilux International has no effect on the direction of Intchains Group i.e., Intchains Group and Semilux International go up and down completely randomly.
Pair Corralation between Intchains Group and Semilux International
Considering the 90-day investment horizon Intchains Group Limited is expected to under-perform the Semilux International. But the stock apears to be less risky and, when comparing its historical volatility, Intchains Group Limited is 1.24 times less risky than Semilux International. The stock trades about -0.08 of its potential returns per unit of risk. The Semilux International Ltd is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 145.00 in Semilux International Ltd on November 2, 2024 and sell it today you would earn a total of 14.00 from holding Semilux International Ltd or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Intchains Group Limited vs. Semilux International Ltd
Performance |
| Timeline |
| Intchains Group |
| Semilux International |
Intchains Group and Semilux International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Intchains Group and Semilux International
The main advantage of trading using opposite Intchains Group and Semilux International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Semilux International 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 Semilux International will offset losses from the drop in Semilux International's long position.| Intchains Group vs. Sysco | Intchains Group vs. Old Dominion Freight | Intchains Group vs. BBB Foods | Intchains Group vs. Delek Logistics Partners |
| Semilux International vs. Old Dominion Freight | Semilux International vs. Procter Gamble | Semilux International vs. AerSale Corp | Semilux International vs. Corporacion America Airports |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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