Correlation Between ICON Project and THR
Can any of the company-specific risk be diversified away by investing in both ICON Project and THR 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 ICON Project and THR into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and THR, you can compare the effects of market volatilities on ICON Project and THR 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 ICON Project with a short position of THR. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and THR.
Diversification Opportunities for ICON Project and THR
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ICON and THR is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and THR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THR and ICON Project 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 ICON Project are associated (or correlated) with THR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THR has no effect on the direction of ICON Project i.e., ICON Project and THR go up and down completely randomly.
Pair Corralation between ICON Project and THR
Assuming the 90 days trading horizon ICON Project is expected to generate 32.61 times less return on investment than THR. But when comparing it to its historical volatility, ICON Project is 5.11 times less risky than THR. It trades about 0.01 of its potential returns per unit of risk. THR is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,266,600 in THR on December 30, 2023 and sell it today you would lose (216,885) from holding THR or give up 17.12% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 74.46% |
Values | Daily Returns |
ICON Project vs. THR
Performance |
Timeline |
ICON Project |
THR |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
ICON Project and THR Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and THR
The main advantage of trading using opposite ICON Project and THR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, THR 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 THR will offset losses from the drop in THR's long position.ICON Project vs. Ethereum | ICON Project vs. Cardano | ICON Project vs. Avalanche | ICON Project vs. Internet Computer |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
CEOs Directory Screen CEOs from public companies around the world | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Stocks Directory Find actively traded stocks across global markets | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation |