Correlation Between Icon Offshore and Aeon Credit
Can any of the company-specific risk be diversified away by investing in both Icon Offshore and Aeon Credit 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 Offshore and Aeon Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Icon Offshore Bhd and Aeon Credit Service, you can compare the effects of market volatilities on Icon Offshore and Aeon Credit 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 Offshore with a short position of Aeon Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Offshore and Aeon Credit.
Diversification Opportunities for Icon Offshore and Aeon Credit
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Icon and Aeon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Icon Offshore Bhd and Aeon Credit Service in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aeon Credit Service and Icon Offshore 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 Offshore Bhd are associated (or correlated) with Aeon Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aeon Credit Service has no effect on the direction of Icon Offshore i.e., Icon Offshore and Aeon Credit go up and down completely randomly.
Pair Corralation between Icon Offshore and Aeon Credit
Assuming the 90 days trading horizon Icon Offshore Bhd is expected to generate 3.25 times more return on investment than Aeon Credit. However, Icon Offshore is 3.25 times more volatile than Aeon Credit Service. It trades about 0.07 of its potential returns per unit of risk. Aeon Credit Service is currently generating about 0.05 per unit of risk. If you would invest 75.00 in Icon Offshore Bhd on August 27, 2024 and sell it today you would earn a total of 30.00 from holding Icon Offshore Bhd or generate 40.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Offshore Bhd vs. Aeon Credit Service
Performance |
| Timeline |
| Icon Offshore Bhd |
| Aeon Credit Service |
Icon Offshore and Aeon Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Offshore and Aeon Credit
The main advantage of trading using opposite Icon Offshore and Aeon Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Offshore position performs unexpectedly, Aeon Credit 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 Aeon Credit will offset losses from the drop in Aeon Credit's long position.| Icon Offshore vs. Barakah Offshore Petroleum | Icon Offshore vs. Digistar Bhd | Icon Offshore vs. Minetech Resources Bhd | Icon Offshore vs. OpenSys M Bhd |
| Aeon Credit vs. Digistar Bhd | Aeon Credit vs. Minetech Resources Bhd | Aeon Credit vs. OpenSys M Bhd | Aeon Credit vs. Insas Bhd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| 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 | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |