Correlation Between Pantech Group and Icon Offshore
Can any of the company-specific risk be diversified away by investing in both Pantech Group and Icon Offshore 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 Pantech Group and Icon Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pantech Group Holdings and Icon Offshore Bhd, you can compare the effects of market volatilities on Pantech Group and Icon Offshore 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 Pantech Group with a short position of Icon Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pantech Group and Icon Offshore.
Diversification Opportunities for Pantech Group and Icon Offshore
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Pantech and Icon is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Pantech Group Holdings and Icon Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Offshore Bhd and Pantech 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 Pantech Group Holdings are associated (or correlated) with Icon Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Offshore Bhd has no effect on the direction of Pantech Group i.e., Pantech Group and Icon Offshore go up and down completely randomly.
Pair Corralation between Pantech Group and Icon Offshore
Assuming the 90 days trading horizon Pantech Group Holdings is expected to under-perform the Icon Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Pantech Group Holdings is 2.52 times less risky than Icon Offshore. The stock trades about -0.03 of its potential returns per unit of risk. The Icon Offshore Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 74.00 in Icon Offshore Bhd on September 2, 2024 and sell it today you would earn a total of 29.00 from holding Icon Offshore Bhd or generate 39.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.21% |
| Values | Daily Returns |
Pantech Group Holdings vs. Icon Offshore Bhd
Performance |
| Timeline |
| Pantech Group Holdings |
| Icon Offshore Bhd |
Pantech Group and Icon Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pantech Group and Icon Offshore
The main advantage of trading using opposite Pantech Group and Icon Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pantech Group position performs unexpectedly, Icon Offshore 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 Icon Offshore will offset losses from the drop in Icon Offshore's long position.The idea behind Pantech Group Holdings and Icon Offshore Bhd 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.| Icon Offshore vs. Radiant Globaltech Bhd | Icon Offshore vs. Cloudpoint Technology Berhad | Icon Offshore vs. SFP Tech Holdings | Icon Offshore vs. Kluang Rubber |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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