Correlation Between Forian and Icad
Can any of the company-specific risk be diversified away by investing in both Forian 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 Forian and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forian Inc and icad inc, you can compare the effects of market volatilities on Forian 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 Forian with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forian and Icad.
Diversification Opportunities for Forian and Icad
Excellent diversification
The 3 months correlation between Forian and Icad is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Forian Inc and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Forian 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 Forian Inc 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 Forian i.e., Forian and Icad go up and down completely randomly.
Pair Corralation between Forian and Icad
Given the investment horizon of 90 days Forian is expected to generate 7.06 times less return on investment than Icad. But when comparing it to its historical volatility, Forian Inc is 1.42 times less risky than Icad. It trades about 0.05 of its potential returns per unit of risk. icad inc is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 164.00 in icad inc on September 16, 2024 and sell it today you would earn a total of 31.00 from holding icad inc or generate 18.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forian Inc vs. icad inc
Performance |
| Timeline |
| Forian Inc |
| icad inc |
Forian and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forian and Icad
The main advantage of trading using opposite Forian and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forian 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.| Forian vs. Avita Medical | Forian vs. Treace Medical Concepts | Forian vs. Inogen Inc | Forian vs. Apyx Medical |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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