Correlation Between Alcon AG and Icad
Can any of the company-specific risk be diversified away by investing in both Alcon AG and Icad 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 Alcon AG and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcon AG and icad inc, you can compare the effects of market volatilities on Alcon AG and Icad 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 Alcon AG with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcon AG and Icad.
Diversification Opportunities for Alcon AG and Icad
Very good diversification
The 3 months correlation between Alcon and Icad is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Alcon AG 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 Alcon AG are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Alcon AG i.e., Alcon AG and Icad go up and down completely randomly.
Pair Corralation between Alcon AG and Icad
Considering the 90-day investment horizon Alcon AG is expected to generate 0.2 times more return on investment than Icad. However, Alcon AG is 4.91 times less risky than Icad. It trades about -0.3 of its potential returns per unit of risk. icad inc is currently generating about -0.09 per unit of risk. If you would invest 9,487 in Alcon AG on August 28, 2024 and sell it today you would lose (870.00) from holding Alcon AG or give up 9.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcon AG vs. icad inc
Performance |
| Timeline |
| Alcon AG |
| icad inc |
Alcon AG and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcon AG and Icad
The main advantage of trading using opposite Alcon AG and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcon AG position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.| Alcon AG vs. Heartbeam | Alcon AG vs. EUDA Health Holdings | Alcon AG vs. Nutex Health | Alcon AG vs. Healthcare Triangle |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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