Correlation Between ICC Holdings and China Aircraft
Can any of the company-specific risk be diversified away by investing in both ICC Holdings and China Aircraft 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 ICC Holdings and China Aircraft into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ICC Holdings and China Aircraft Leasing, you can compare the effects of market volatilities on ICC Holdings and China Aircraft 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 ICC Holdings with a short position of China Aircraft. Check out your portfolio center. Please also check ongoing floating volatility patterns of ICC Holdings and China Aircraft.
Diversification Opportunities for ICC Holdings and China Aircraft
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between ICC and China is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding ICC Holdings and China Aircraft Leasing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Aircraft Leasing and ICC Holdings 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 ICC Holdings are associated (or correlated) with China Aircraft. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Aircraft Leasing has no effect on the direction of ICC Holdings i.e., ICC Holdings and China Aircraft go up and down completely randomly.
Pair Corralation between ICC Holdings and China Aircraft
If you would invest 2,310 in ICC Holdings on September 19, 2024 and sell it today you would earn a total of 13.00 from holding ICC Holdings or generate 0.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ICC Holdings vs. China Aircraft Leasing
Performance |
| Timeline |
| ICC Holdings |
| China Aircraft Leasing |
ICC Holdings and China Aircraft Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ICC Holdings and China Aircraft
The main advantage of trading using opposite ICC Holdings and China Aircraft positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ICC Holdings position performs unexpectedly, China Aircraft 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 China Aircraft will offset losses from the drop in China Aircraft's long position.| ICC Holdings vs. Employers Holdings | ICC Holdings vs. AMERISAFE | ICC Holdings vs. NMI Holdings | ICC Holdings vs. Investors Title |
| China Aircraft vs. Pekin Life Insurance | China Aircraft vs. Siriuspoint | China Aircraft vs. Papaya Growth Opportunity | China Aircraft vs. ICC Holdings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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