Correlation Between Greenlite Ventures and Icon Media
Can any of the company-specific risk be diversified away by investing in both Greenlite Ventures 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 Greenlite Ventures and Icon Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greenlite Ventures and Icon Media Holdings, you can compare the effects of market volatilities on Greenlite Ventures 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 Greenlite Ventures with a short position of Icon Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greenlite Ventures and Icon Media.
Diversification Opportunities for Greenlite Ventures and Icon Media
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Greenlite and Icon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Greenlite Ventures 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 Greenlite Ventures 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 Greenlite Ventures 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 Greenlite Ventures i.e., Greenlite Ventures and Icon Media go up and down completely randomly.
Pair Corralation between Greenlite Ventures and Icon Media
Given the investment horizon of 90 days Greenlite Ventures is expected to generate 2.7 times less return on investment than Icon Media. But when comparing it to its historical volatility, Greenlite Ventures is 1.62 times less risky than Icon Media. It trades about 0.05 of its potential returns per unit of risk. Icon Media Holdings is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 0.04 in Icon Media Holdings on August 31, 2024 and sell it today you would lose (0.01) from holding Icon Media Holdings or give up 25.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greenlite Ventures vs. Icon Media Holdings
Performance |
| Timeline |
| Greenlite Ventures |
| Icon Media Holdings |
Greenlite Ventures and Icon Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greenlite Ventures and Icon Media
The main advantage of trading using opposite Greenlite Ventures and Icon Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greenlite Ventures 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.| Greenlite Ventures vs. American Leisure Holdings | Greenlite Ventures vs. Supurva Healthcare Group | Greenlite Ventures vs. China Health Management | Greenlite Ventures vs. Embrace Change Acquisition |
| 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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |