Correlation Between Intchains Group and Cyberlux Corp

Can any of the company-specific risk be diversified away by investing in both Intchains Group and Cyberlux Corp 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 Cyberlux Corp 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 Cyberlux Corp, you can compare the effects of market volatilities on Intchains Group and Cyberlux Corp 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 Cyberlux Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Intchains Group and Cyberlux Corp.

Diversification Opportunities for Intchains Group and Cyberlux Corp

0.26

Correlation Coefficient

Intchains Group  Cyberlux Corp

Modest diversification

The 3 months correlation between Intchains and Cyberlux is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and Cyberlux Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cyberlux Corp 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 Cyberlux Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cyberlux Corp has no effect on the direction of Intchains Group i.e., Intchains Group and Cyberlux Corp go up and down completely randomly.

Pair Corralation between Intchains Group and Cyberlux Corp

Considering the 90-day investment horizon Intchains Group Limited is expected to generate 1.5 times more return on investment than Cyberlux Corp. However, Intchains Group is 1.5 times more volatile than Cyberlux Corp. It trades about 0.0 of its potential returns per unit of risk. Cyberlux Corp is currently generating about -0.06 per unit of risk. If you would invest  718.00  in Intchains Group Limited on December 22, 2024 and sell it today you would lose (299.00) from holding Intchains Group Limited or give up 41.64% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.77%
Values	Daily Returns

Intchains Group Limited  vs.  Cyberlux Corp

Intchains Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intchains Group Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Intchains Group is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Cyberlux Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Cyberlux Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental drivers remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Intchains Group and Cyberlux Corp

The main advantage of trading using opposite Intchains Group and Cyberlux Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Intchains Group position performs unexpectedly, Cyberlux Corp 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 Cyberlux Corp will offset losses from the drop in Cyberlux Corp's long position.

The idea behind Intchains Group Limited and Cyberlux Corp 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.

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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..