Correlation Between GN Store and Icad
Can any of the company-specific risk be diversified away by investing in both GN Store 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 GN Store and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GN Store Nord and icad inc, you can compare the effects of market volatilities on GN Store 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 GN Store with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of GN Store and Icad.
Diversification Opportunities for GN Store and Icad
Excellent diversification
The 3 months correlation between GNNDY and Icad is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding GN Store Nord and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and GN Store 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 GN Store Nord 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 GN Store i.e., GN Store and Icad go up and down completely randomly.
Pair Corralation between GN Store and Icad
Assuming the 90 days horizon GN Store is expected to generate 33.67 times less return on investment than Icad. But when comparing it to its historical volatility, GN Store Nord is 2.12 times less risky than Icad. It trades about 0.0 of its potential returns per unit of risk. icad inc is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 165.00 in icad inc on August 30, 2024 and sell it today you would earn a total of 12.00 from holding icad inc or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GN Store Nord vs. icad inc
Performance |
| Timeline |
| GN Store Nord |
| icad inc |
GN Store and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GN Store and Icad
The main advantage of trading using opposite GN Store and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GN Store 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.| GN Store vs. Demant AS ADR | GN Store vs. Sonova Holding AG | GN Store vs. GN Store Nord | GN Store vs. Bone Biologics Corp |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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