Correlation Between Icad and Escalon Medical
Can any of the company-specific risk be diversified away by investing in both Icad and Escalon Medical 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 Icad and Escalon Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between icad inc and Escalon Medical Corp, you can compare the effects of market volatilities on Icad and Escalon Medical 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 Icad with a short position of Escalon Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Icad and Escalon Medical.
Diversification Opportunities for Icad and Escalon Medical
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Icad and Escalon is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding icad inc and Escalon Medical Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Escalon Medical Corp and Icad 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 icad inc are associated (or correlated) with Escalon Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Escalon Medical Corp has no effect on the direction of Icad i.e., Icad and Escalon Medical go up and down completely randomly.
Pair Corralation between Icad and Escalon Medical
If you would invest 6.00 in Escalon Medical Corp on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Escalon Medical Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
icad inc vs. Escalon Medical Corp
Performance |
| Timeline |
| icad inc |
| Escalon Medical Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Icad and Escalon Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Icad and Escalon Medical
The main advantage of trading using opposite Icad and Escalon Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Icad position performs unexpectedly, Escalon Medical 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 Escalon Medical will offset losses from the drop in Escalon Medical's long position.The idea behind icad inc and Escalon Medical Corp pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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