Correlation Between Intchains Group and SolarEdge Technologies

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

Diversification Opportunities for Intchains Group and SolarEdge Technologies

0.46

Correlation Coefficient

Intchains Group  SolarEdge Technologies

Very weak diversification

The 3 months correlation between Intchains and SolarEdge is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Intchains Group Limited and SolarEdge Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SolarEdge Technologies 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 SolarEdge Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SolarEdge Technologies has no effect on the direction of Intchains Group i.e., Intchains Group and SolarEdge Technologies go up and down completely randomly.

Pair Corralation between Intchains Group and SolarEdge Technologies

Considering the 90-day investment horizon Intchains Group is expected to generate 15.06 times less return on investment than SolarEdge Technologies. In addition to that, Intchains Group is 1.08 times more volatile than SolarEdge Technologies. It trades about 0.01 of its total potential returns per unit of risk. SolarEdge Technologies is currently generating about 0.19 per unit of volatility. If you would invest  1,722  in SolarEdge Technologies on May 25, 2025 and sell it today you would earn a total of  1,708  from holding SolarEdge Technologies or generate 99.19% return on investment over 90 days.

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

Intchains Group Limited  vs.  SolarEdge Technologies

Intchains Group

Risk-Adjusted Performance

Weakest

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

SolarEdge Technologies

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SolarEdge Technologies are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent fundamental indicators, SolarEdge Technologies reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Intchains Group and SolarEdge Technologies

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

The idea behind Intchains Group Limited and SolarEdge Technologies 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.