Correlation Between Navitas Semiconductor and Intchains Group

Can any of the company-specific risk be diversified away by investing in both Navitas Semiconductor 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 Navitas Semiconductor and Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Navitas Semiconductor Corp and Intchains Group Limited, you can compare the effects of market volatilities on Navitas Semiconductor 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 Navitas Semiconductor with a short position of Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Navitas Semiconductor and Intchains Group.

Diversification Opportunities for Navitas Semiconductor and Intchains Group

0.53

Correlation Coefficient

Navitas Semiconductor  Intchains Group

Very weak diversification

The 3 months correlation between Navitas and Intchains is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Navitas Semiconductor Corp and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group and Navitas Semiconductor 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 Navitas Semiconductor Corp 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 Navitas Semiconductor i.e., Navitas Semiconductor and Intchains Group go up and down completely randomly.

Pair Corralation between Navitas Semiconductor and Intchains Group

Given the investment horizon of 90 days Navitas Semiconductor Corp is expected to under-perform the Intchains Group. But the stock apears to be less risky and, when comparing its historical volatility, Navitas Semiconductor Corp is 1.0 times less risky than Intchains Group. The stock trades about -0.14 of its potential returns per unit of risk. The Intchains Group Limited is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  370.00  in Intchains Group Limited on December 29, 2024 and sell it today you would lose (77.00) from holding Intchains Group Limited or give up 20.81% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Navitas Semiconductor Corp  vs.  Intchains Group Limited

Navitas Semiconductor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Navitas Semiconductor Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

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 latest unfluctuating performance, the Stock's fundamental indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Navitas Semiconductor and Intchains Group

The main advantage of trading using opposite Navitas Semiconductor and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Navitas Semiconductor 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.

The idea behind Navitas Semiconductor Corp and Intchains Group Limited 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.

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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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.