Correlation Between Icon Offshore and MI Technovation
Can any of the company-specific risk be diversified away by investing in both Icon Offshore and MI Technovation 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 MI Technovation 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 MI Technovation Bhd, you can compare the effects of market volatilities on Icon Offshore and MI Technovation 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 MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icon Offshore and MI Technovation.
Diversification Opportunities for Icon Offshore and MI Technovation
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Icon and 5286 is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Icon Offshore Bhd and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation Bhd 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 MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of Icon Offshore i.e., Icon Offshore and MI Technovation go up and down completely randomly.
Pair Corralation between Icon Offshore and MI Technovation
Assuming the 90 days trading horizon Icon Offshore Bhd is expected to generate 1.38 times more return on investment than MI Technovation. However, Icon Offshore is 1.38 times more volatile than MI Technovation Bhd. It trades about 0.07 of its potential returns per unit of risk. MI Technovation Bhd is currently generating about 0.03 per unit of risk. If you would invest 55.00 in Icon Offshore Bhd on November 28, 2024 and sell it today you would earn a total of 47.00 from holding Icon Offshore Bhd or generate 85.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Icon Offshore Bhd vs. MI Technovation Bhd
Performance |
| Timeline |
| Icon Offshore Bhd |
| MI Technovation Bhd |
Icon Offshore and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icon Offshore and MI Technovation
The main advantage of trading using opposite Icon Offshore and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icon Offshore position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation's long position.| Icon Offshore vs. Media Prima Bhd | Icon Offshore vs. Datasonic Group Bhd | Icon Offshore vs. Sports Toto Berhad | Icon Offshore vs. Lotte Chemical Titan |
| MI Technovation vs. Press Metal Bhd | MI Technovation vs. Choo Bee Metal | MI Technovation vs. Datasonic Group Bhd | MI Technovation vs. Leader Steel Holdings |
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 CEOs Directory module to screen CEOs from public companies around the world.
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