Correlation Between Canopus BioPharma and Icon Media
Can any of the company-specific risk be diversified away by investing in both Canopus BioPharma and Icon Media 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 Canopus BioPharma and Icon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Canopus BioPharma Incorporated and Icon Media Holdings, you can compare the effects of market volatilities on Canopus BioPharma and Icon Media 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 Canopus BioPharma with a short position of Icon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Canopus BioPharma and Icon Media.
Diversification Opportunities for Canopus BioPharma and Icon Media
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Canopus and Icon is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Canopus BioPharma Incorporated and Icon Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icon Media Holdings and Canopus BioPharma 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 Canopus BioPharma Incorporated are associated (or correlated) with Icon Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icon Media Holdings has no effect on the direction of Canopus BioPharma i.e., Canopus BioPharma and Icon Media go up and down completely randomly.
Pair Corralation between Canopus BioPharma and Icon Media
Given the investment horizon of 90 days Canopus BioPharma Incorporated is expected to generate 1.84 times more return on investment than Icon Media. However, Canopus BioPharma is 1.84 times more volatile than Icon Media Holdings. It trades about 0.14 of its potential returns per unit of risk. Icon Media Holdings is currently generating about 0.08 per unit of risk. If you would invest 0.03 in Canopus BioPharma Incorporated on October 18, 2024 and sell it today you would lose (0.02) from holding Canopus BioPharma Incorporated or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Canopus BioPharma Incorporated vs. Icon Media Holdings
Performance |
| Timeline |
| Canopus BioPharma |
| Icon Media Holdings |
Canopus BioPharma and Icon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Canopus BioPharma and Icon Media
The main advantage of trading using opposite Canopus BioPharma and Icon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Canopus BioPharma position performs unexpectedly, Icon Media 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 Media will offset losses from the drop in Icon Media's long position.| Canopus BioPharma vs. Icon Media Holdings | Canopus BioPharma vs. Eline Entertainment Group | Canopus BioPharma vs. Green Leaf Innovations | Canopus BioPharma vs. Plandai Biotech |
| Icon Media vs. Eline Entertainment Group | Icon Media vs. Green Leaf Innovations | Icon Media vs. Plandai Biotech | Icon Media vs. All American Gld |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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