Correlation Between Ichor Holdings and Intchains Group
Can any of the company-specific risk be diversified away by investing in both Ichor Holdings and Intchains Group 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 Ichor Holdings and Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ichor Holdings and Intchains Group Limited, you can compare the effects of market volatilities on Ichor Holdings and Intchains Group 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 Ichor Holdings with a short position of Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ichor Holdings and Intchains Group.
Diversification Opportunities for Ichor Holdings and Intchains Group
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ichor and Intchains is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Ichor Holdings and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group and Ichor Holdings 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 Ichor Holdings are associated (or correlated) with Intchains Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intchains Group has no effect on the direction of Ichor Holdings i.e., Ichor Holdings and Intchains Group go up and down completely randomly.
Pair Corralation between Ichor Holdings and Intchains Group
Given the investment horizon of 90 days Ichor Holdings is expected to generate 0.62 times more return on investment than Intchains Group. However, Ichor Holdings is 1.62 times less risky than Intchains Group. It trades about 0.02 of its potential returns per unit of risk. Intchains Group Limited is currently generating about 0.0 per unit of risk. If you would invest 2,984 in Ichor Holdings on August 29, 2024 and sell it today you would earn a total of 279.00 from holding Ichor Holdings or generate 9.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 86.69% |
| Values | Daily Returns |
Ichor Holdings vs. Intchains Group Limited
Performance |
| Timeline |
| Ichor Holdings |
| Intchains Group |
Ichor Holdings and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ichor Holdings and Intchains Group
The main advantage of trading using opposite Ichor Holdings and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ichor Holdings position performs unexpectedly, Intchains Group 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 Intchains Group will offset losses from the drop in Intchains Group's long position.| Ichor Holdings vs. Cohu Inc | Ichor Holdings vs. Entegris | Ichor Holdings vs. Kulicke and Soffa | Ichor Holdings vs. Photronics |
| Intchains Group vs. ABIVAX Socit Anonyme | Intchains Group vs. Morningstar Unconstrained Allocation | Intchains Group vs. SPACE | Intchains Group vs. Knife River |
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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