Correlation Between ICON Project and ZCash
Can any of the company-specific risk be diversified away by investing in both ICON Project and ZCash 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 ZCash into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICON Project and ZCash, you can compare the effects of market volatilities on ICON Project and ZCash 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 ZCash. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICON Project and ZCash.
Diversification Opportunities for ICON Project and ZCash
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between ICON and ZCash is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding ICON Project and ZCash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZCash 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 ZCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZCash has no effect on the direction of ICON Project i.e., ICON Project and ZCash go up and down completely randomly.
Pair Corralation between ICON Project and ZCash
Assuming the 90 days trading horizon ICON Project is expected to generate 1.71 times more return on investment than ZCash. However, ICON Project is 1.71 times more volatile than ZCash. It trades about -0.13 of its potential returns per unit of risk. ZCash is currently generating about -0.25 per unit of risk. If you would invest 31.00 in ICON Project on January 20, 2024 and sell it today you would lose (8.00) from holding ICON Project or give up 25.81% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
ICON Project vs. ZCash
Performance |
Timeline |
ICON Project |
ZCash |
ICON Project and ZCash Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ICON Project and ZCash
The main advantage of trading using opposite ICON Project and ZCash positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICON Project position performs unexpectedly, ZCash 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 ZCash will offset losses from the drop in ZCash's long position.The idea behind ICON Project and ZCash 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
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 | |
Transaction History View history of all your transactions and understand their impact on performance | |
Commodity Directory Find actively traded commodities issued by global exchanges |