Correlation Between ICON Project and THX
Can any of the company-specific risk be diversified away by investing in both ICON Project and THX 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 THX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and THX, you can compare the effects of market volatilities on ICON Project and THX 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 THX. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and THX.
Diversification Opportunities for ICON Project and THX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ICON and THX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and THX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THX 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 THX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THX has no effect on the direction of ICON Project i.e., ICON Project and THX go up and down completely randomly.
Pair Corralation between ICON Project and THX
Assuming the 90 days trading horizon ICON Project is expected to generate 1.22 times more return on investment than THX. However, ICON Project is 1.22 times more volatile than THX. It trades about 0.01 of its potential returns per unit of risk. THX is currently generating about -0.05 per unit of risk. If you would invest 76.00 in ICON Project on December 30, 2023 and sell it today you would lose (40.00) from holding ICON Project or give up 52.63% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 74.46% |
Values | Daily Returns |
ICON Project vs. THX
Performance |
Timeline |
ICON Project |
THX |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
ICON Project and THX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and THX
The main advantage of trading using opposite ICON Project and THX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, THX 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 THX will offset losses from the drop in THX'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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |